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DIRECTORS’ REPORTFor the year ended 30 June 2009Remuneration report cont.A Principles used to determine the nature andamount of remuneration cont.(a) Fixed remuneration(i) Base salaryThe base salary is influenced by the scope of the role andthe knowledge, skills and experience required for theposition. External remuneration consultants provide periodicanalysis and advice to ensure the base salary is competitivefor a comparable role.Base salary for senior executives is reviewed annually as partof the Company’s overall remuneration review processand is assessed against the Company’s and the individual’sperformance. A senior executive’s salary is also reviewedon promotion.(ii) SuperannuationIn addition to statutory superannuation contributions,senior executives may elect to contribute additionalamounts, subject to legislative requirements.(iii) BenefitsSenior executives may receive benefits, including carparking, living away from home allowances, and paymentfor certain professional memberships.(b) Short term incentives (STI)The STI is an annual “at risk” component of remunerationfor the senior executives and the net amount after allowingfor applicable taxation is payable in cash. The objective ofthe STI is to remunerate senior executives for achievingannual company targets and their own individual performancetargets. Company and individual performance targetseach account for 50 percent of the maximum STI. The STIpayment to senior executives is based on achievementsmeasured against key performance indicators (KPIs). Themaximum STI opportunity varies according to the role. KPIsrequire performance in improving operational effectivenessand the achievement of strategic financial and non-financialmeasures, linked to the drivers of performance in currentand future reporting periods.The Remuneration Committee is responsible for assessingthe extent to which the KPIs of the Managing Director &CEO and senior executives have been achieved. To assist inmaking this assessment, the Committee receives detailedreports and presentations on the performance of the businessfrom the Managing Director & CEO and independentremuneration consultants as required.The Remuneration Committee recommends for Board approvalthe STI to be paid to the Managing Director & CEO andsenior executives.(c) Long term incentives (LTI)LTI’s are structured to reward senior executives for thelong term performance of the Company and are grantedin the form of employee options.All employee options have been issued pursuant to theSt Barbara Limited Employee Share Option Plan. Vestingof options granted during the year is conditional on theCompany achieving a Total Shareholder Return relativeto a peer group of companies over a three year period,as a minimum at the 50th percentile.Refer page 38 for further information.B Details of remuneration(i) Remuneration paidDetails of the remuneration of Directors and the seniorexecutives of the Company and the Group are set out inthe following tables.The Directors of the Company and the Group during theyear ended 30 June 2009 were:• S J C Wise• T J Lehany• E Eshuys• D W Bailey• B J Gibson• P C Lockyer• R K RaeChairmanManaging Director & CEOAppointed 2 March 2009Managing Director & CEOResigned 2 March 2009Non-Executive DirectorNon-Executive DirectorNon-Executive DirectorNon-Executive DirectorThe senior executives with the authority and responsibilityfor planning, directing and controlling the activities of theCompany and the Group during the year ended 30 June2009, were:• Tim J Lehany• Eduard Eshuys• Martin Reed• George Viska• Ian BirdManaging Director & CEOAppointed 2 March 2009Managing Director & CEOResigned 2 March 2009Chief Operating OfficerAppointed 12 January 2009Acting Chief Operating OfficerResigned 30 January 2009Chief Operating OfficerResigned 4 July 2008• Garth Campbell-Cowan Chief Financial Officer• Ross Kennedy• Peter Thompson• Adrian McArthurGeneral ManagerCorporate Services/Company SecretaryGeneral Manager ExplorationResigned 4 July 2008Acting General ManagerExplorationAppointed 4 July 2008stbarbara.com.au – Annual Report 2009: 33