Genetic Signatures

Genetic Signatures Limited – Annual Report 2021 Remuneration Report DIRECTORS’ REPORT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021 8 REMUNERATION REPORT - AUDITED The remuneration report is set out under the following main headings: 1. Remuneration principles and key management personnel 2. Non-executive director remuneration 3. Executive remuneration 4. Equity disclosures 5. Employment agreements The information provided includes remuneration disclosures that are required under AASB 124 – Related Party Disclosures. These disclosures have been transferred from the financial report and have been audited. 1 REMUNERATION PRINCIPLES AND KEY MANAGEMENT PERSONNEL 1.1 Policy for determining the nature and amount of key management personnel remuneration The Board’s remuneration policy determines the nature and amount of remuneration for Board members and senior executives of the Company. The policy, setting the terms and conditions for the Executive Directors and other senior executives, was developed by the Remuneration & Nomination Committee and approved by the Board. The Board ensures that the Company’s remuneration levels are appropriate in the markets in which it operates and are applied, and seen to be applied, fairly. Non-executive directors Fees and payments to non-executive directors reflect the demands which are made on, and the responsibilities of, the directors. Non-executive directors’ fees and payments are reviewed with reference to market rates for comparable companies. The chairman’s fees are determined independently to the fees of non-executive directors. The Chairman is not present at any discussions relating to determination of his own remuneration. Non-executive directors are entitled to receive share options, following approval by the shareholders of Genetic Signatures Limited. Non-executive directors’ fees are captured within an aggregate directors’ pool limit, which is periodically recommended for approval by shareholders. The pool stands at $450,000 excluding share-based payments which are subject to separate shareholder approval. This was increased from $250,000 at the last AGM in November 2020. Executive directors and senior executives The objective of the Group’s executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aligns executive reward with achievement of strategic objectives, and the creation of value for shareholders. The Board ensures that executive reward satisfies the following key criteria. Alignment to company and shareholders’ interests: • Has company growth as a core component of plan design • Focuses on sustained long-term growth in shareholder wealth • Attracts and retains high calibre executives • Total remuneration is comparable to market standards. Alignment to program participants’ interests: • Rewards capability and experience • Reflects competitive reward for contribution to growth in company value • Provides a clear structure for earning rewards • Provides recognition for contribution. The framework provides a mix of fixed and variable pay, and a blend of short and long-term incentives.