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Service
Condition
The participant is to have been in the continuous employment of WHSP from 1 August 2015 to the
relevant vesting date.
Board
Discretion
In the event of serious misconduct or a material misstatement in the financial statements, the Board
may cancel LTI based remuneration and recover LTI remuneration paid in previous financial years.
The Board may waive vesting conditions in the event of a participant leaving employment.
Expiry
The performance rights issued during the year expire on 30 November 2020.
The LTI plan was introduced during the year ended 31 July 2016 and was designed to reward senior executives for
above market performance as reflected by the hurdles set above. The plan was effective from 1 August 2015 and
the first test period will be for the three years ended 31 July 2018.
Total Remuneration Package
The total value of each remuneration package is approved by the Remuneration Committee based on market
data. Based on this data for 2015 the remuneration received by Executive Directors and the Company Secretary for
the year ended 31 July 2016 was under the 50th percentile for ASX listed Companies with a market capitalisation
between $3.5 billion and $7.5 billion.
New Hope Corporation Limited
Fixed Remuneration
Fixed remuneration for senior executives is set annually by the NHRC. It comprises a cash salary, superannuation
and other non-cash benefits such as a company vehicle. Executives may elect to take a vehicle allowance in lieu of
a company vehicle and may salary sacrifice a portion of their cash salary into superannuation or other benefits.
STIs
Structure of STIs for the KMP of the Consolidated Entity – New Hope executives
Feature
Description
Maximum
Opportunity/
Allocation
31% of New Hope Managing Director’s fixed remuneration
31% of New Hope Chief Operating Officer’s fixed remuneration
25% of New Hope Chief Financial Officer’s fixed remuneration
Performance
metrics
STIs are designed to motivate and reward senior executives to achieve the short-term goals of
New Hope.
Objective
Weighting
New Hope Group Profit, Sales and Investment Performance
60%
New Hope Group Compliance: Safety, Environment and Risk Management
20%
New Hope Group Production Cost, Project Development and Merger and
Acquisition Activities
20%
Each of the STIs KPIs is made up of qualitative and quantitative measures with the quantitative
measures set annually by the NHRC.
Delivery
of STI
100% of the STI awarded is paid in cash following release of the year end results.
At the end of each period the NHRC awards executives a percentage of their maximum allowable STIs having
regard to the performance of the executive and New Hope during the period.
Given the historically low coal price and profit performance of New Hope, it was agreed that no STI be paid for the
2016 financial year.