2010 Annual Report - Grange Resources

DECEMBER 2010 ANNUAL REPORT 35
Table 3: Relative proportions linked to performance
The relative proportions of remuneration that are linked to performance and those that are fixed are as follows:
Name Fixed Remuneration At Risk - STI At Risk - LTI
Dec-10 Jun-10 Dec-10 Jun-10 Dec-10 Jun-10
Executive Director
R Clark 50% 50% 16% 16% 34% 34%
H Zhao (1) 100% - - - - -
Other Key Management Personnel
W Bould 59% 59% 12% 12% 29% 29%
C Ferrier 77% - 8% - 15% -
F Moutinho 100% - - - - -
D Corr 81% 86% 8% 7% 11% 7%
R Carpenter 81% 81% 8% 8% 11% 11%
(1)
H Zhao was appointed an executive Director of the Company on 1 December 2010 and was not eligible to participate in the Group’s variable
remuneration schemes for the six month period ended 31 December 2010
Service Agreements
On appointment to the Board, all non-executive Directors enter into a service agreement with the Company. The agreement summarises
the Board policies and terms, including compensation, relevant to the office of Director.
Remuneration and other terms of employment for the Managing Director, Chief Operating Officer and the other key management personnel
are formalised in service agreements. Each of the agreements provide for the provision of performance related variable remuneration and
other benefits.
In March 2008, the Company and its Managing Director, Mr Russell Clark, entered into an employment agreement. The agreement is for a
term of 3 years. Mr Clark may terminate his employment at any time by giving three months notice. The Company may terminate Mr Clark’s
employment by giving three months notice or by the Company paying Mr Clark an amount equivalent to three months remuneration in lieu
of notice. The Company is presently in discussions with the Managing Director in relation to a contract renewal.
All contracts with other key management personnel of the consolidated Grange Group are ongoing and provide for termination of
employment at any time by giving three months notice or by the Company paying an amount equivalent to three months remuneration
in lieu of notice.
Share-based Compensation
Under the Grange Resources Limited Long Term Incentive Plan (the Plan), the Board may, from time to time grant options or rights, or both,
to eligible employees. The Plan is designed to provide long term incentives for executives to deliver long term shareholders returns. Under
the Plan, participants are granted options or rights which only vest if certain timing or performance conditions are met. Participation in the
Plan is at the Board’s discretion and no individual has a contractual right to participate in the Plan or to receive any guaranteed benefits.
Rights to Grange shares
The number of rights in shares in the Company offered to each Director of Grange Resources Limited and other key management personnel
of the Group including their personally related parties, are set out below,
31 December 2010
Other Balance
Balance Granted as Changes 31 December
1 July 2010 remuneration (net) 2010 Vested Unvested
Directors of Grange Resources Limited
R Clark - 1,067,650 - 1,067,650 355,883 711,767
Other Key Management Personnel of Group
W Bould - 456,192 - 456,192 152,064 304,128
D Corr - 44,239 - 44,239 14,746 29,493
R Carpenter - 53,212 - 53,212 17,737 35,475
DirectorS’ Report
Financial Statements
Shareholder information