Westgold Resources Limited Annual Report 2020

43 Westgold Resources Limited Annual Report 2020 How is performance measured? Relative Total Shareholder Return Performance Condition Total Shareholder Return (TSR) is the percentage growth in shareholder value, which takes into account factors such as changes in share price and dividends paid. The Relative TSR performance condition measures Westgold’s ability to deliver superior shareholder returns relative to its peer companies by comparing the TSR performance of Westgold against the performance of the S&P/All Ordinaries Gold Index. The vesting schedule for the Relative TSR measure is as follows: Relative TSR Performance % Contribution to the Number of Employee Options to Vest Below Index 0% Equal to the Index 50% Above Index and below 15% above the Index Pro-rata from 50% to 100% 15% above the Index 100% Return on Capital Employed Performance Condition Return on Capital Employed (ROCE) measures the efficiency with which management uses capital in seeking to increase shareholder value. The vesting schedule for the ROCE measure is as follows: ROCE Performance % Contribution to the Number of Employee Options to Vest Less than or equal to the average annual weighted average cost of capital ( WACC ) 0% WACC (calculated as above) + 3% 50% WACC (calculated as above) + between 3% and 6% Pro-rata from 50% to 100% WACC (calculated as above) + 6% 100% When is performance measured? Tranche 3 The measurement date is 31 March 2022 unless otherwise determined by the Board. Executives must exercise the options on the vesting date. What happens if an executive leaves? Where executives cease to be an employee of the Group: – due to resignation or termination for cause, then any unvested options will automatically lapse on the date of the cessation of employment; or – due to redundancy, ill health, death or other circumstances approved by the Board, the executive will generally be entitled to a pro-rata number of unvested options based on achievement of the performance measures over the performance period up to the date of cessation of employment; and – where an employee ceases employment after the vesting of their options, the options automatically lapse after three months of cessation of employment. unless the Board determines otherwise on compassionate grounds. What happens if there is a change of control? In the event of a change of control, the performance-period end date will be brought forward to the date of the change of control and ZEPO’s will vest based on performance over the shortened period (subject to board discretion).