PDF - Somero Enterprises

Section 3Management and GovernanceDirectors’ Remuneration Report continuedDetails of the service contracts of the executive directors are show in the table below:Director Salary Bonus OptionsJack Cooney US$264,000 per annum 50-100% of salary 874,190Michael Niemela US$150,000 per annum 40-80% of salary 205,691With the approval of the Remuneration Committee, executive directors are entitled, under their service agreements to perform dutiesoutside the Company and to receive fees for those duties.Share OptionsThe Remuneration Committee approves the grant of options to executive directors under the Group’s discretionary share option schemes.Other than as disclosed above, the share options issued to executive directors do not have any performance criteria attached as at the timethey were first issued it was not felt that performance criteria were appropriate.Performance GraphThe Company flotation on 1 November 2006 was at 125p and rose to 132p on the first day of trading. For the two months of 2006 the stocktraded at a high of 133.5p and a low of 130p and ended trading 29 December 2006 at 132p which represented a 5.6% increase over theflotation price.The directors recognise that a two month period is not comparable to any indices available. The Company will create comparisons ashistorical data becomes available.Non-Executive DirectorsThe remuneration of the non-executive directors is determined by the Board within the limits set out in the Articles of Association, and isbased upon independent surveys of fees paid to non-executive directors of similar companies. The remuneration paid to each non-executivedirector in the year to 31 December 2006 was subject to Board approval. The letters of appointment and terms are listed in the chart below.Director Date of appointment Termination dateStuart Doughty 1 November 2006 2008 AGMRon Maskalunas 1 November 2006 2007 AGMTom Anderson 1 November 2006 2008 AGMIan Weingarten 1 November 2006 2009 AGMApproved by the Board of Directors and signed on behalf of the Board.Tom AndersonChairman of Remuneration Committee28Somero Enterprises, Inc.Annual Report and Accounts 2006