The company structures base pay as total employment cost package. This base pay is paid in the combination of cash and non cash items. The company reviews base pay annually and it ensures that base pay offered by the company is competitive according to the market. The superannuation benefits are paid to executives on complying with superannuation norms. The superannuation contribution rate is capped at maximum superannuation contribution base of ordinary time earnings.
The company pays short term incentives in the form of cash bonuses and performance share rights. The payment of bonus is at the discretion of the management of the company and it is paid on the basis of achievement of Key Performance Indicators (KPIs). The executives are reviewed annually by the remuneration committee to ensure that incentives are linked to strategic and operational plans of the company. The maximum short term incentive is capped at 50% of base salary for the executive chairman. Corporate KPI is given a weightage of 90% and personal KPI is given weightage of 10% for the purpose of calculating this incentive. The company has paid short term performance incentive of $167,034 to the executive chairman.
The company provides long term incentives through the Gold Road Employee Incentive Plan. The long term incentives are measured against long term internal company hurdles and shareholder return hurdles. These incentives are measured at the end of minimum three years and the executive must be employee at the time of measurement. The maximum long term incentives are capped at 65% of base salary for executive chairman. The total shareholder return vesting hurdle and company vesting hurdle each are given weightage of 50% for the purpose of calculating long term incentive. The company has paid long term incentives of $237,965 to the executive chairman during the financial year 2015.
The company has paid total base salary and benefits, including remuneration of $558,507 to the executive chairman for the year ended 2015. This compensation includes salaries and fees of $374,517, superannuation contributions of $19,472, other benefits of $89,959 and perquisites of $74,559. There is no fixed term of engagement for the executive chairman and his term was commenced from October 01, 2011. He can leave the company by giving notice of 4 months and the company can relieve him by giving notice of 1 year.
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