A Principles used to determine the nature and amount of remuneration (audited)
The Group’s policy for determining the nature and amount of emoluments of Board members and senior executives is set by the Board’s Remuneration Committee. The Committee makes recommendations to the Board concerning the remuneration of executive and non-executive Directors having regard to the Group’s stage of development, remuneration in the industry and performance.

The main objective of the Group’s Executive Reward Program is to ensure reward for performance is competitive and appropriate for the results delivered. The Board has regard to the following key criteria for good reward governance practices:

• Competitiveness and reasonableness
• Acceptability to shareholders
• Performance linkage / alignment of executive compensation
• Transparency
• Capital management

In consultation with external remuneration consultants, the Group seeks to structure an executive remuneration program that is market competitive and complimentary to the reward strategy of the organisation, and ensures:

Alignment to shareholders’ interests including:

• Economic profit as a core component of plan design
• Focus on sustained growth in share price and delivering constant return on assets as well as focusing the executive on key non-financial drivers of value
• Attracting and retaining high calibre executives

Alignment to program participants’ interests including:

• Rewards capability and experience
• Reflects competitive reward for contribution to shareholder growth
• Provides a clear structure for earning rewards
• Provides recognition for contribution

The program is intended to provide a mix of fixed and variable pay, and a blend of short and long-term incentives, as appropriate. As executives gain seniority with the Group, the balance of this mix shifts to a higher proportion of “at risk” rewards.

Non-executive Directors
The aggregate remuneration of Directors is set by shareholders in general meeting, in accordance with the Constitution of the Company, with individual Director’s remuneration determined by the Board within the aggregate total. In determining the level of fees, data from surveys undertaken by outside consultants is taken into account. The aggregate amount of Directors’ fees approved by shareholders on 26 October 2004 is $500,000.

Fees and payments to non-executive Directors reflect the demands which are made on, and the responsibilities of, the Directors. The Board also has regard to the advice of independent remuneration consultants to ensure non-executive Directors’ fees and payments are appropriate and in line with the market.

The Chairman’s fees are determined independently to the fees of non-executive Directors based on comparative roles in the external market. The Chairman is not present at any discussions relating to determination of his own remuneration.

Retirement allowances for Directors
There are no retirement allowances for non-executive Directors.