Page 44 - Icon Energy 2014 Annual Report

REMUNERATION REPORT - AUDITED
8. SERVICE AGREEMENTS
The Company has a policy that service agreements with Executive and Senior Managers are limited in term and include
termination clauses of between one and twelve months.
Service agreements are in place for the Managing Director (Mr Raymond James), the Chief Financial Officer (Dr Kevin Jih), the
Legal Counsel & Company Secretary (Mr Ross Mallett), the Exploration Manager (Mr Martin Berry) and Commercial Manager
(Mr Richard Holliday).
The service agreements with the Company run for a period of five years, from the date of engagement or renewal and set out
the duties and obligations of the respective senior executives.
The contracts provide that the agreements may be terminated by either party providing up to twelve months’ notice as shown
in the table below. The Company may make a payment in lieu of notice equal to the base amount prescribed in the service
agreement for a specified period. In addition, accrued statutory benefits and superannuation benefits are payable. Should the
Company be taken over and the contract terminated, an amount equal to one year’s base salary is payable.
Short Term Incentive
In July 2014 the Remuneration Committee assessed the extent to which Executive and Senior Managers and staff had
achieved corporate and individual objectives during the year to 30 June 2014. Based on that assessment the Committee
determined that on average 70% of STI performance rights issued on 4 March 2014 would vest. On average 30% of STI
did not vest due to not all vesting conditions being met.
LongTerm Incentive
In July 2016 the Remuneration Committee will assess the extent to which Executive and Senior Managers have achieved
corporate objectives during the 3 years to 30 June 2016. 2012 LTI incentives will not vest unless the share price exceeds
45 cents for a continuous period of at least 30 days (40 cents for 2012 rights) and the Company’s share price growth
performs well when benchmarked against that of other energy companies.
Table 8: Service Agreements with Executive and Senior Managers
6 months 12 months 1 January 12 R James
6 months 12 months 11 August 10 K Jih
6 months 6 months 13 March 12 R Mallett
2 months
2 months
2 months
2 months
1 August 13
1 July 12
M Berry
R Holliday
Payment in lieu of
notice based on FR
Discretion of Board to
pay portion of STI & LTI
Payment in lieu of
notice based on FR
Discretion of Board to
pay portion of STI & LTI
Payment in lieu of
notice based on FR
Discretion of Board to
pay portion of STI & LTI
Payment in lieu of
notice based on FR
Discretion of Board to
pay portion of STI & LTI
Payment in lieu of
notice based on FR
Discretion of Board to
pay portion of STI & LTI
STI: May earn up to
50% of FR
LTI: May earn up to
50% of FR
STI: May earn up to
40% of FR
LTI: May earn up to
40% of FR
STI: May earn up to
40% of FR
LTI: May earn up to
40% of FR
STI: May earn up to
30% of FR
LTI: May earn up to
20% of FR
STI: May earn up to
30% of FR
LTI: May earn up to
20% of FR
Date of
Contract
Name of
Executive
Termination
by Icon
(without
cause)
Termination
by
employee
Termination
Payments
(where terminated
by Company)
STI &LTI
Entitlements
44 ICON ENERGY LIMITED 2014 Annual Report ABN 61 058 454 569