Westgold Resources Limited Annual Report 2021

40 Westgold Resources Limited Annual Report 2021 for the year ended 30 June 2021 FINANCIAL REPORT REMUNERATION REPORT (AUDITED) 6. PERFORMANCE AND EXECUTIVE REMUNERATION OUTCOMES Remuneration earned by executives in 2021 The actual remuneration earned by executives in the year ended 30 June 2021 is set out in the Table on page 42. 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 was used to measure performance for STI rewards. As a result of the Group’s performance against those measures STIs rewarded for the FY2021 as disclosed in the Table on page 37, were paid in August 2021. LTI performance and outcomes Performance Rights were granted in FY2021 (Tranche 4). ZEPO’s have been granted in Tranches during FY2019 (Tranche 2) and FY2020 (Tranche 3). All LTI’s are subject to performance hurdles. – Tranche 2 has a three-year vesting period ending in June 2021. – Tranche 3 has a three-year vesting period ending in June 2022. – Tranche 4 has a three-year vesting period ending in June 2023. The Executive Chairman PG Cook was granted 233,506 Tranche 4 LTI’s in November 2020. Senior Executives were granted a total 405,615 Tranche 4 LTI’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 17 * 30 June 18 * 30 June 19 * 30 June 20 30 June 21 Closing share price $1.84 $1.85 $1.88 $2.09 $1.88 Profit (loss) per share (cents) 5.18 (0.34) 3.74 8.65 18.16 Net tangible assets per share** $0.98 $1.12 $1.14 $1.24 $1.43 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. ** Net tangible assets per share include right of use assets and lease liabilities. 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.