Executive pay
The executive pay and reward program is comprised of four components:

• Base pay and benefits
• Short-term performance incentives
• Long-term incentives through participation in an option plan, and
• Other remuneration such as superannuation

The combination of these comprises the executive’s total remuneration.

Base pay
This is structured as a total employment cost package which may be delivered as a mix of cash and prescribed non-financial benefits at the executive’s discretion.

Executives are offered a competitive base pay that comprises the fixed component of pay and rewards. External remuneration consultants provide analysis and advice to ensure base pay is set to reflect the market for a comparable role. Base pay for senior executives is reviewed annually to ensure the executive’s pay is competitive with the market. An executive’s pay is also reviewed on promotion.

There are no guaranteed base pay increases fixed in any senior executive’s contracts.

Benefits
Executives may receive benefits including car allowances and car parking.

Short-term incentives
Short-term bonus payments are made to executives at the discretion of the remuneration committee, based on exceptional performance. The remuneration committee has engaged an independent remuneration consultant to advise it on formalising a short-term incentive (STI) for all executives in future years, although this has not been implemented during the year.

Kingsgate Consolidated Employee Option Plan
Information on the Kingsgate Consolidated Employee Option Plan is set out on page 43.

B Details of remuneration (audited)
Amounts of remuneration
Details of the remuneration of each Director of Kingsgate Consolidated Limited and each of the key management personnel (as defined in AASB 124 Related Party Disclosures) of the Company and Group who received the highest remuneration, including their personally-related entities, for the year ended 30 June 2007 are set out in the following tables.

The key management personnel of Kingsgate Consolidated Limited includes the Directors (see page 38) and the following executive officers, who are also the 4 highest paid executives of the entity:

• Gavin Thomas
• Peter Warren
• Stephen Promnitz
• Arthur Ellis

The key management personnel of the Group are the Directors of Kingsgate Consolidated Limited (see page 38), the Chief Executive Officer and those executives that report directly to the Chief Executive Officer. This includes the 5 Group executives who received the highest remuneration for the year ended 30 June 2007. The executives are:

• Gavin Thomas
• Peter Warren
• Stephen Promnitz
• Phil MacIntyre
• Ron James

All elements of remuneration are not directly related to performance.