Icon Energy Annual Report 2019

3. METHODOLOGY USED TO DETERMINE THE NATURE AND AMOUNT OF REMUNERATION Non-Executive Directors Fees paid to Non-Executive Directors reflect the demands made on, and responsibilities of, such directors. Non-Executive Directors' fees are reviewed by the Board on an annual basis. Since 2014, the Board has determined that Non-Executive Directors are paid a base fee of $70,000 per annum together with the payment of additional fees to Directors serving on Board Committees to recognise their contribution to the Company together with superannuation. An additional $7,500 per annum per Committee is paid to Committee members and $8,500 per annum per Committee for the Chairmen of the Committees. The Board decided to reduce these fees by 20% effective from 1 January 2018 having regard to the current low share price. This arrangement has been in place for the year ended 30 June 2019. The maximum total amount available for payment of all Non-Executive Director fees is $500,000 per annum which was approved by shareholders at the 2010 Annual General Meeting. The total amount of fees actually paid to Non-Executive Directors during the financial year was $297,402. Non-Executive Directors do not receive performance based remuneration. Executive Managers and Senior Management Executive and Senior Managers are remunerated through a combination of: −− Fixed Remuneration (FR); −− Bonus or other incentives for outstanding performance to be determined at the discretion of the Board. In November 2017, the company’s Performance Rights Plan ("Plan") expired. The Plan provided for the granting of appropriately structured short and long-term incentives to employees (including Executive Directors) in addition to their fixed remuneration. Since 2017, the Board decided not to seek shareholder approval for any new plan. There were no remuneration consultants used by the Company during the year ended 30 June 2019 or in the prior year. 4. FIXED REMUNERATION Fixed remuneration consists of the base remuneration calculated on a total cost basis and includes FBT charges on employee benefits, if relevant, as well as contributions to superannuation funds. Remuneration levels are reviewed annually. Senior executives were restricted to CPI increases over the financial year. 5. SHORT-TERM INCENTIVES The Company did not issue Short-term Incentives (STI) for the 2018-19 year. 6. LONG-TERM INCENTIVES The Company did not issue Long-term Incentives (LTI) for the 2018-19 year. 29 Icon Energy Annual Report 2019