45 Westgold Resources Limited Annual Report 2024 5.2 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? STI opportunity is set as a percentage of individual executive fixed remuneration: – MD: up to 100% (FY23: 50%) – Other executives: up to 60% (FY23 40%) How is performance measured? Performance is measured via a combination of company and individual Key Performance Indicators (KPIs) reflecting the core drivers of the Company’s short-term performance and providing a framework for delivering sustainable value to the Group and its shareholders. What KPIs were chosen? The following KPIs are applicable for the FY24. 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. – KPI 1: Safety & Environmental Performance Targets (25%) – KPI 2: All-in Cost (AIC) relative to Targets (25%) – KPI 3: Gold production relative to Targets (25%) – KPI 4: Personal KPI (25%) How STI award is determined? Where applicable, each company KPI is set at target, and stretch levels resulting in payout at 50% and 100% of the STI opportunity. Individual executive performance against the relevant personal KPI is assessed into “Does not meet expectations”, Partially meets expectations”, “Meets expectations” and “Exceeds expectations” resulting in payout at 0%, 50%, 100% and 150% levels respectively. 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 set KPIs by the RNC. The Board approves the final STI award based on the assessment of performance and the award is paid within three months following the end of the financial year. 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 as 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; or – 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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