RFG Annual Report 2007 - Retail Food Group

33. Share-based payments (continued)
The following reconciles the outstanding share options granted under the executive share option plan at the beginning and end of the
fi nancial year:
Number of
options
2007
Weighted
average
exercise price
$
Balance at beginning of the fi nancial year – –
Granted during the fi nancial year 2,066,644 $1.00
Forfeited during the fi nancial year – –
Exercised during the fi nancial year (i) – –
Expired during the fi nancial year – –
Balance at end of the fi nancial year (ii) 2,066,644 $1.00
Exercisable at end of the fi nancial year 2,066,644 $1.00
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Retail Food Group Annual Report
(i)
Exercised during the financial year.
No share options granted under the executive share option plan were exercised during the fi nancial year.
(ii) Balance at end of the financial year
The share options outstanding at the end of the fi nancial year had an exercise price of $1.00 (2006: nil), and a weighted average remaining
contractual life of 3.44 years (2006: nil years).
34. Key management personnel compensation
Details of key management personnel
The directors and other members of key management personnel of the Group during the year were:
• Tony Alford, Chief Executive Offi cer and Managing Director
• Nigel Nixon, Corporate Counsel and Executive Director
• Gary Best, Chief Operations Offi cer
• John Cowley, Independent Chairman
• Colin Archer, Independent Director
• Mark Connors, Company Secretary and Legal Counsel
• Karen Walker, Financial Controller (appointed 27 May 2006), formerly Chief Financial Offi cer (resigned 27 May 2006)
• Damien Peters, Chief Financial Offi cer (appointed 27 May 2006).
Key management personnel compensation policy
The remuneration policy of the Company has been designed to align Director and senior management objectives with shareholder and business
objectives and provides a fi xed remuneration component and share options. The Board is of the belief that its remuneration policy is appropriate
and effective in retaining the most appropriate and suitable executives and Directors to operate and manage the economic entity, as well as
create goal congruence between Directors, senior management and shareholders.
The Board’s policy for determining the nature and amount of remuneration for Directors, executives and senior management of the Company is to
ensure remuneration packages properly reward Directors and senior management for their time, effort, experience and length of service.
The executive Directors and executives receive a superannuation guarantee contribution required by the government which is currently 9%,
and do not receive any other retirement benefi ts. Some individuals, however, have chosen to sacrifi ce part of their salary to increase payments
towards superannuation.
All remuneration paid to Directors and executives is valued at the cost to the Company and expensed. Share options granted to Directors,
executives and management are valued using the Black-Scholes pricing model.
The Board policy is to remunerate non-executive Directors at market rates for time, commitment and responsibilities. The Remuneration
Committee determines payments to the non-executive Directors and aims to review their remuneration bi-annually, based on market practice,
duties and accountability. Independent external advice may be sought when required.