What happens to LTIs when a participant ceases employment? Where a participant ceases to be employed by the Company, unvested performance rights are typically automatically forfeited. In limited circumstances in accordance with the Performance Incentive Plan, the Board may exercise discretion as to whether any unvested performance rights that will remain on foot and become capable of vesting in accordance with Performance Incentive Plan rules. Reasons may include, but are not limited to, death, total and permanent disablement, retirement or redundancy. What happens to LTIs the event of a change of control? In accordance with Performance Incentive Plan rules, vesting conditions attached to LTIs will be deemed to be automatically waived in the circumstances where a Change of Control occurs, such that all LTIs will vest and become capable of exercise. Does the Group have a policy in relation to hedging at-risk remuneration? Yes, the Performance Incentive Plan rules prohibit participants from entering an arrangement where the effect would result in limiting their exposure to risk relating to performance rights that have not vested. What other rights of participation exist in relation to performance rights and share options? There are no participating rights or entitlements inherent in the options and the holders will not be entitled to participate in new issues of capital offered to shareholders during the currency of the options. All shares allotted upon the exercise of options will rank pari passu in respect with other shares. Performance Rights & Employee Share Options – other key facts Grant of performance rights 271,526 performance rights were granted to Senior Executives during the year following receipt of shareholder approval at the Annual General Meeting held on 22 November 2022. Performance rights vested 574,474 performance rights vested in favour of Senior Executives during the year. Performance rights expired 316,061 performance rights previously awarded to Senior Executives expired during the year. Share options grants For the year ended 30 June 2023, long term incentives outlined above aligned with CAGR share price performance have been granted to Senior Executives. 421,271 share options were granted to Senior Executives during the year. Share options vested No share options vested in favour of Senior Executives during the year. Share options expired No share options awarded to Senior Executives expired during the year. Proposed 2024 executive incentive planning & strategy The Remuneration Committee has considered an incremental update to the executive incentive plan which will be subject to shareholder approval. Senior Executive incentives for 2024 shall consist of STI performance measures and a LTI share options linked to market measures. The STI would be based upon annual performance targets and paid 50% in cash and 50% in the form of performance rights which vest after one further year with 3 years to exercise. The share options would consider an annual grant of at market options vesting after three years subject to satisfaction of market-based performance criteria and with one further year to exercise. No further LTI is proposed for award for 2024, as the triennium cycle commenced on 1 July 2021 and ending on 30 June 2024 was considered and granted in the 2022 financial year, in the form of a performance rights vesting after three years and subject to satisfaction of performance criteria and with three further years to exercise. Further details in relation to the proposed 2024 remuneration structure will be made available to shareholders in conjunction with the 2023 Notice of Annual General Meeting, scheduled for release in October 2023. Remuneration Report (audited) continued 26 Sheffield Resources Limited Annual Report 2023
RkJQdWJsaXNoZXIy MjE2NDg3