Investor Presentaiton
34
Armour Energy and controlled entities
Directors' report continued
for the year ended 30 June 2020
REMUNERATION REPORT (AUDITED) CONTINUED
SERVICE AGREEMENTS CONTINUED
Bradley Lingo continued
No KPIs
Contribution
Percentage
50%
1
The Board approving a debt or equity refinancing of the FIIG Notes.
2
The Company achieving a stabilised flow rate of in excess of 14TJ's per day from the Kincora Gas Project.
25%
3
The Board approving the entering into of a farm-out or other commercial agreement in respect of the NT
Assets.
TOTAL
25%
100%
In addition to the bonus payment, Mr Lingo is entitled to the below Performance Shares:
armourenergy.com.au
Mr Laurent commenced as COO on 1 July 2020 and is now entitled to $100,000 of AJQ Shares, to bring his total package to $421,797
per annum. The shares are equivalent to 2.65 million shares and will be escrowed for 12 months from issuance.
Bonus payments are at the discretion of the Remuneration committee.
Employment contracts entered into with other KMP all contain the following key terms:
Performance based salary increases and/or bonuses paid at the discretion of the Board
Short and long-term incentives, such as options paid at the discretion of the Board
Resignation/notice period of 3 months by either the KMP or the Company
No payouts upon resignation or termination, outside industrial regulation (i.e. 'golden handshakes')
All executive employment agreements have three months (or less) notice periods. Salaried executives are entitled to their statutory
entitlements of accrued annual leave and long service leave together with any superannuation on termination.
Performance Criteria
Number of
Performance
All directors and key management personnel have no entitlement to termination payments in the event of removal for misconduct.
Shares
1.
On the first Commercial Discovery in the Co-Era Assets being determined in accordance with recognised
standards in the oil and gas industry and announced by the Company
900,000
The base remuneration, inclusive of superannuation, included in the contractual arrangements to other key management personnel
is set out below:
2.
The VWAP for Shares trading on ASX for 20 consecutive days is not less than 500% over the closing price
for Shares on the last trading day before the Commencement Date.
1,800,000
Key Management Personnel
B Lingo**
3.
The Board approving the entering into of a farm- out or other commercial agreement in respect of the NT
Assets.
1,350,000
K Schlobohm
M Laurent
4.
The Board approving a refinancing of the FIIG Notes.
1,350,000
R Aden*
5.
The Company achieving a stabilised flow rate of in excess of 14TJ's per day from the Kincora Gas Project
900,000
B Clement**
On the first Commercial Discovery on any Licences other than
R Fenton**
6.
(a) The Kincora Gas Project; and
900,000
R Cressey**
(b)
The CoEra Assets.
N Rayner***
Base salary incl super
Maximum bonus payable
$276,000
$100,000
$50,000
$320,000
$96,000
$340,000
$102,000
$475,000
$213,750
$329,528
$410,613
$340,000
$374,989
$102,000
Nicholas Mather
Title: Executive Chairman
Agreement commenced: 18 December 2009
Term of agreement: On-going
Details: Mr Mather is ordinarily entitled to a base remuneration of $210,000 per annum, inclusive of superannuation. However, due
to cost reductions this was reduced from April 2020.
Michael Laurent
Title: Chief Operating Officer
Agreement commenced: 1 July 2020
Term of agreement: On-going
Details: Mr Laurent is ordinarily entitled to a base remuneration of $421,797 per annum, inclusive of superannuation.
Mr Laurent was employed from 26 March 2019 as Subsurface Manager but was subsequently promoted to GM Development
effective 19 July 2019.
* Mr Aden was employed as CFO from 23 July 2019 to 07 August 2020.
**Mr Cressey was CEO from 21 November 2011 to 23 October 2019. Mr Fenton was Interim CEO from 21 October 2019 to 20 March 2020. Mr
Clement was CEO from 12 March 2020 to 17 April 2020. Mr Lingo commenced as CEO on 12 June 2020.
*** Mr Rayner was employed as COO from 26 November 2018 to 19 July 2019.
SHARE-BASED COMPENSATION
During the year ended 30 June 2020, there were no shares issued in lieu of fixed remuneration.
OPTIONS GRANTED AS PART OF REMUNERATION FOR THE YEAR ENDED 30 JUNE
2020
Under the Company's employee share option plan (ESOP), which was approved by shareholders at the 2016 AGM, share options
may be issued to directors and executives as part of their remuneration. The options are not issued based on performance criteria
but are issued to the majority of directors and executives of Armour to align comparative shareholder return and reward for
directors and executives.
35View entire presentation