Westgold Resources Limited Annual Report 2020

44 Westgold Resources Limited Annual Report 2020 Financial Report Remuneration Report (Audited) continued 6. PERFORMANCE AND EXECUTIVE REMUNERATION OUTCOMES Remuneration earned by executives in 2020 The actual remuneration earned by executives in the year ended 30 June 2020 is set out in the Table on page 46. This provides shareholders with a view of the remuneration paid to executives for performance in FY2020 year. Use of board discretion over remuneration outcomes During the year the Remuneration and Nomination Committee – Considered the appropriateness of awarding STI in relation to performance outcomes and market conditions; – Reviewed the personal KPIs for all senior executives in line with the short term incentive arrangements; and – Determined the appropriate total remuneration packages for new appointments of senior executives to ensure alignment to the market and the Company’s stated objectives. STI performance and outcomes A combination of financial and non-financial measures were used to measure performance for STI rewards. As a result of the Group’s performance against those measures STIs rewarded for the FY2020 as disclosed in the Table on page 42, were paid in August 2020. LTI performance and outcomes ZEPO’s have been granted in Tranches during FY2019 (Tranche 1 and 2) and FY2020 (Tranche 3) and are subject to performance hurdles. – Tranche 1 did not meet the required vesting conditions and have therefore lapsed. – Tranche 2 has a three-year vesting period ending in June 2021. – Tranche 3 has a three-year vesting period ending in June 2022. The 153,810 Tranche 3 ZEPO’s granted to the Executive Chairman in May 2020 are still subject to shareholder approval at the upcoming AGM. Other Executive were granted a total 530,331 Tranche 3 ZEPO’s in May 2020 under the ESOP. For further details of options granted and vested refer to Table 3 below. Overview of Company performance The table below sets out information about Westgold’s earnings and movements in shareholder wealth for the past five years up to and including the current financial year. 30 June 16 * 30 June 17 * 30 June 18 * 30 June 19 * 30 June 20 Closing share price N/A $1.84 $1.85 $1.88 $2.09 Profit (loss) per share (cents) (6.75) 5.18 (0.34) 3.74 8.65 Net tangible assets per share $0.34 $0.98 $1.12 $1.14 $1.24 Dividend paid per shares (cents) – – – – – * The comparatives have not been adjusted for changes due to the adoption of AASB 15, AASB 16 and AASB 9. Clawback of remuneration In the event of serious misconduct or material misstatement in the Group’s financial statements, the Board has the discretion to reduce, cancel or clawback any unvested short-term incentives or long-term incentives. Share trading policy The Westgold trading policy applies to all non-executive directors and executives. The policy prohibits employees from dealing in Westgold securities while in possession of material non-public information relevant to the Group. Executives must not enter into any hedging arrangements over unvested long-term incentives under the Group’s long-term incentive plan. The Group would consider a breach of this policy as gross misconduct, which may lead to disciplinary action and potentially dismissal.