ABN 61 058 454 569
ICON ENERGY LIMITED
2015 Annual Report
39
REMUNERATION REPORT – AUDITED
1. REMUNERATION FRAMEWORK
The Company’s Remuneration framework is designed to ensure that:
• Executive and Senior Managers receive competitive and reasonable market based levels of base remuneration;
• Employees and Executive and Senior Managers who perform well have the opportunity to be rewarded through an annual
short term incentive plan;
• Long term incentives are aligned to the achievement of strategic objectives and creation of value for shareholders.
2. ROLE OF THE REMUNERATION, NOMINATIONS AND SUCCESSION COMMITTEE
The Remuneration, Nominations and Succession Committee is responsible for making recommendations to the Board on
remuneration policies. The Committee, where necessary, obtains independent advice on the remuneration packages offered
to potential employees. The Company’s broad remuneration policy ensures that each remuneration package is properly
aligned to the person’s duties and responsibilities and that remuneration is competitive in attracting, retaining and motivating
people of the highest quality. The Company has structured an executive remuneration framework that is competitive and
complementary to the reward strategy of the organisation.
The Remuneration, Nominations and Succession Committee Charter sets out the Board’s policy for the nomination and
appointment of directors and the process for the evaluation of the performance of senior executives. The performance of the
Managing Director is evaluated by the Committee on an annual basis in July in accordance with the procedures set out in the
Committee’s Charter. The Corporate Governance Statement provides further information on the role of the Committee. The
Committee also reviews and approves the outcomes for the Managing Director’s direct reports on the recommendation of
the Managing Director and reviews incentive programs and employment terms offered to the wider group.
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. 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 $371,752. During
the year the Board approved the payment of additional fees to Directors serving on Board Committees to recognise their
contribution to the Company. 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. 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);
• Short-term Incentive (STI) – an annual cash and/or equity based incentive awarded at the discretion of the Board on
achievement of specified company and individual performance goals;
• Long-term Incentive (LTI) – equity grants which may be granted on an annual basis, at the discretion of the Board, and have
the potential to vest following achievement of specified company objectives measured over a 3 year period
STI and LTI represent the ‘at-risk’ portions of remuneration.
Consistent with market practice, the proportion of remuneration attributable to each component of the Icon Energy
Remuneration Policy is dependent on the level of seniority of the employee. The Managing Director has the highest level of
‘at-risk’ remuneration reflecting the greater level of responsibility of this role. Table 2 sets out the relative proportion of at-risk
remuneration for senior executives and managers.
Generally, the LTI will only be available to the executive directors and senior executives; whereas STI may be made available
to employees throughout the Company.
