2013 Apr 15 Annual Report 2012 - Phosphagenics

Directors’ Report continued
REMUNERATION REPORT (AUDITED) (CONTINUED)
The Group’s current remuneration policies provide a signifi cant degree of linkage between an executive’s
variable long term incentive remuneration and the overall fi nancial performance of the Group. Given the
position of the Group and its stage of development, the remuneration is aimed at retaining key individuals
to ensure the success of current and future product development and successful commercialisation
of products, which will in turn impact future profi tability of the Group and shareholder wealth.
Employment contracts
No executives have fi xed term contracts with the Group. The company or the executive may terminate
employment by providing four weeks written notice. On termination, any long term incentive plan
(ESOP) options or (ECRS) rights that have vested are available to be exercised. Any options or rights
that have not yet vested will be forfeited.
The company may terminate employment at any time without notice if serious misconduct has
occurred. Where termination with cause occurs the executive is only entitled to that portion
of remuneration that is fi xed, and only up to the date of termination. On termination with cause,
any unvested options or rights will immediately be forfeited.
Company performance and its link to long-term incentives
The fi nancial performance measures driving long-term incentive vesting and payment outcomes are
revenues from the sale of goods and Company share price. Because of the stage of the Company’s
development, earnings per share and other profi tability based measures do not accurately refl ect
performance over the past fi ve years.
The following chart shows Phosphagenics Limited’s annual revenues from the sale of goods and year
end share price over the fi ve-year period from 1 January 2008 to 31 December 2012.
39
3.0
Company Performance 2008 to 2012
2.5
2.0
1.5
1.0
0.5
0.0
2008
2009
2010
2011
2012
Revenue from sale of goods
31 December Share Price
Options granted during the year to key management personnel
No options were awarded during the year to key management personnel and no options vested during the year.
Performance Rights granted during the year to key management personnel
1,450,000 ECRS Rights were awarded to key management personnel during the year, of which nil vested.
Remuneration of key management personnel
Aggregates 2012
$
2011
$
Short-Term Benefi ts 1,645,236 1,568,076
Post-Employment 135,780 115,125
Share Based Payment 238,440 95,119
Termination 15,508 275,742
Totals 2,034,964 2,054,062
DIRECTOR’S REPORT