DIRECTORS’ REPORT (cont.)
AUDITED REMUNERATION REPORT (CONT.) KEY TERMS OF EMPLOYMENT CONTRACTS The Group entered into an executive service agreement with Mark Benson as Managing Director and Chief Executive Officer effective 5 October 2015. The remuneration component of the agreement is in line with relevant industry comparables. The variable component (Performance Bonus) can range anywhere between 0% to 60% of the fixed component based on performance measured against a range of key performance indicators and targets, set annually by the directors. The attainment of realistically achievable performance and targets on a weighted average measure would result in a bonus of 30% of the fixed component and bonus above and below this would result from overall superior or poorer performance.
RELATIONSHIP BETWEEN REMUNERATION POLICY AND COMPANY PERFORMANCE The remuneration of executive officers contains an annual cash bonus. The total cash bonus paid in a year is discretionary and is closely related to and determined by the current profit levels of the Group. Executive officer’s remuneration is aligned with the long- term Group performance via the shareholdings that these individuals retain in the Group.
The executive service agreement contains the following key terms: Annual Salary: Total fixed remuneration of $568,124 Performance Bonus:
Variable, ranging from 0% to 60% of total fixed annual remuneration, based on performance measured against a range of key performance indicators Variable, ranging from 0% to 40% of total fixed annual remuneration, based on performance measured against a range of key performance indicators
Long-term Incentive:
Notice Period: Six months’ notice Executive officers are employed under ongoing employment arrangements. Their employment thus entails between three to six months’ notice. This is considered appropriate because they have many years of service with the Group and are shareholders of the company. The tables below set out summary information about the Group’s earnings and movements in shareholder wealth for the five years to June 2023: 30 June 2023 $’000 30 June 2022 $’000 30 June 2021 $’000 30 June 2020 $’000 30 June 2019 $’000 Revenue 200,886 129,955 101,242 66,462 50,126 Net profit/(loss) before income tax 14,151 9,379 8,085 1,853 (2,260) Net profit/(loss) after income tax 9,491 6,551 5,542 1,266 (1,610)
30 June 2023
30 June 2022
30 June 2021
30 June 2020
30 June 2019
Share price at end of year
1.12 2.00 2.00 8.84 8.71
1.02 1.00 2.00 6.24 6.07
0.79 0.75 1.75 5.36 5.21
0.48 0.00 0.00 1.23 1.20
0.33 0.00 0.00
Interim dividend (cents per share) Final dividend (cents per share) Basic earnings/(losses) per share Diluted earnings/(losses) per share
(1.72) (1.72)
All dividends above were franked to 100% at 30% corporate tax rate.
Annual Report 2023 41
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