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STIs
Structure of STIs for the KMP of the Parent Company
Feature
Description
STI pool
Based on target
performance
50% of Managing Director’s fixed remuneration
40% of Finance Director’s fixed remuneration
20% of Company Secretary’s fixed remuneration
10% of the fixed remuneration of other participants in the plan
The size of the pool is determined by the performance metrics below, in the event that the targets are
exceeded (performance metrics exceed 100%) the pool will be increased as set out below.
Performance
metrics
The STI metrics align with WHSP’s strategic goals to maximise shareholders’returns.
Objective
Weighting Threshold (80%)
Target (100%)
Outperformance
Regular cash to the
parent company
net of regular
expenses
50% > 0% and < 4%
higher than last
year
4% to < 5%
higher than
previous year
5% to < 6% = 110%
6% to < 7% = 120%
7% to < 8% = 130%
8% to < 9% = 140%
9% and higher = 150%
As dividends are paid out of parent company cash, increasing net cash inflows enable the payment of
increasing dividends.
Adjusted net asset
value (post tax)
per share (adjusted
by adding back
dividends paid
by the parent
company)
50% > 0% and < 2%
higher than
ASX200
Accumulation
Index
2% to < 3%
higher than
ASX200
Accumulation
Index
3% to <4% = 110%
4% to < 5% = 120%
5% to < 6% = 130%
6% to < 7% = 140%
7% and higher = 150%
Increases in net asset value per share drive increases in the WHSP share price.
Entitlement
to the STI
pool
Each participant’s entitlement to the STI pool is determined by the Remuneration Committee based
on the performance of their duties and their contribution to meeting the objectives of the parent
company including performance, efficiency, risk and marketing.
The total of all STIs determined by the Remuneration Committee cannot exceed the STI pool.
Delivery
of STI
100% of the STI awarded is paid in cash following release of the year end results.
The STI plan was introduced during the year ended 31 July 2016 and was designed to motivate and reward senior
executives to generate increasing net cash flow (to facilitate increasing dividends) and to grow the value of the
investment portfolio (measured by net asset value) for the benefit of shareholders. The STIs were effective from
1 January 2016 and have been pro-rated for the period 1 January 2016 to 31 July 2016.