Page 43 - Icon Energy 2014 Annual Report

REMUNERATION REPORT - AUDITED
Payments. The calculations are performed using various approved rights valuation methodologies. See Note 16 to the
Financial Report.
(ii) At 30 June 2014, the total fair value of the LTI rights granted during the year was $368,552 of which $122,851 was
expensed in the 2013/14 financial year, with the remainder to be expensed in the subsequent two years.
(iii) No exercise price is paid on exercise of the rights.
(iv) Fair value of each right granted on 14.12.12 is $0.23 for STIs and $0.19 for LTIs and for rights granted on 4.03.14
$0.082 for STIs and $0.149 for LTIs.
(v) Share rights holders do not have any rights to participate in any issues of shares or other interests in the Company or
any other entity.
7. RELATIONSHIP BETWEEN REMUNERATION POLICY AND PERFORMANCE
Icon Energy’s remuneration policy seeks to encourage an alignment between the performance of the Company, increase
in shareholder wealth and remuneration of its executive KMPs. It does this by including short-term and long-term ‘at
risk’ incentives that only vest when executives achieve pre-determined key corporate performance objectives. The long-
term incentive plan in particular links vesting of LTI plan rights to achievement of long-term Company objectives such as
growth in share price and market capitalisation and exploration performance which contributes to an increase in long-
term shareholder wealth.
Icon’s remuneration policy encourages and rewards good performance and an alignment to shareholder wealth by:
• Attracting, incentivising and retaining high calibre senior executives focused on achieving Company objectives;
• Packaging the remuneration with a mix of fixed, short term and long term incentives. This motivates executives to
focus on and achieve a combination of short and long term objectives that leads to sustainable growth in shareholder
wealth, in the form of share price growth.
The following table shows the Company’s Profit/Loss (after tax) for the last four years as well as the share price and
market capitalisation over those years.
During the year the Company achieved a number of positive milestones. These included:
• The Company maintained its excellent safety record with no Lost Time Injuries experienced during the year;
• The ATP855 joint venture, of which Icon has a 35.1% interest, completed the drilling of 5 additional wells as part of its
exploration program in the Cooper Basin fulfilling its work program commitments. All wells recorded significant gas
shows and confirmed the continuation of the basin centred gas play across the tenement;
• During the year the Company secured the necessary capital to progress its exploration campaign in the Cooper Basin.
The Company raised $18.8 million via a corporate placement in December of 80.3 million shares at 23.5 cents per
share.
The Company issued a total of 3,390,089 Performance Rights to senior executives under the Company’s 2013/14
Short–term (STI) incentive plan and 4,494,537 Performance Rights to senior executives under the 2013/14 Longterm
(LTI) incentive plan effective 4 March 2014. The benefits available under these plans will only vest to the extent that the
Company and its executives can achieve rigorous performance objectives that will add shareholder value.
Table 7: Company’s Profit/Loss (after tax)
30 June 2011
0.14
469,301,394
$65,702,195
($6,000,512)
30 June 2012
0.18
469,301,394
$84,474,251
($4,618,666)
30 June 2013
0.145
533,391,210
$77,341,725
$3,720,392
30 June 2014
0.14
615,774,351
$86,208,409
$1,577,590
Closing Share Price
Number of Shares
Market Cap
Profit (Loss) after tax
ABN 61 058 454 569 ICON ENERGY LIMITED 2014 Annual Report 43