35 Westgold Resources Limited Annual Report 2023 In accordance with the Company’s objective to ensure that executive remuneration is aligned to Company performance, a portion of executives’ remuneration is placed “at risk”. The relative proportion of FY2023 potential total remuneration packages split between the fixed and variable remuneration is shown below: Executive Fixed remuneration STI LTI Managing Director 61% 20% 19% Other Executives 77% 19% 4% Elements of remuneration Fixed remuneration Fixed remuneration consists of base salary, superannuation and other non-monetary benefits and is designed to reward for: – the scope of the executive’s role; – the executive’s skills, experience and qualifications; and – individual performance. Short Term Incentive (STI) arrangements Under the STI, all executives have the opportunity to earn an annual incentive award which is delivered in cash. The STI recognises and rewards annual performance. How is it paid? Any STI award is paid in cash after the assessment of annual performance. How much can executives earn? In FY2023, the STI dollar values that executives are entitled to receive as a percentage of their fixed remuneration would not exceed 50% for the Managing Director and 40% for the other executives. How is performance measured? A combination of specific Company Key Performance Indicators (KPIs) is chosen to reflect the core drivers of short-term performance and provide a framework for delivering sustainable value to the Group and its shareholders. These measures have been selected as they can be reliably measured, are key drivers of value for shareholders and encourage behaviours in line with the Company’s core values. What KPIs were chosen? The following KPIs were chosen for the 2023 financial year: – KPI 1: Safety & Environmental Performance Targets (30%) – KPI 2: All-in Sustaining Cost (AISC) relative to budget (30%) – KPI 3: Gold production relative to budget (30%) – KPI 4: Personal KPI (10%) When is it paid? The STI award is determined after the end of the financial year following a review of performance over the year against the STI performance measures by the Remuneration and Nomination Committee. The Board approves the final STI award based on this assessment of performance and the award is paid in cash up to three months after the end of the performance period. What happens if an executive leaves? Where executives cease to be an employee of the Group: – due to resignation or termination for cause, before the end of the financial year, no STI is awarded for that year; or – due to redundancy, ill health, death or other circumstances approved by the Board, the executive will be entitled to a pro-rata cash payment based on assessment of performance up to the date of ceasing employment for that year; – unless the Board determines otherwise. What happens if there is a change of control? In the event of a change of control, a pro-rata cash payment will be made based on assessment of performance up to the date of the change of control (subject to Board discretion).
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