Investor Presentaiton
Armour Energy and controlled entities
armourenergy.com.au
Directors' report continued
for the year ended 30 June 2020
REMUNERATION REPORT (AUDITED) CONTINUED
PRINCIPLES USED TO DETERMINE THE NATURE AND AMOUNT OF REMUNERATION
CONTINUED
Voting and comments made at the Company's 2019 Annual General Meeting ('AGM')
At the 2019 AGM, 99.8% of the eligible votes received supported the adoption of the remuneration report for the year ended 30
June 2019. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.
DETAILS OF REMUNERATION
Amounts of remuneration
Det
Details of the remuneration of key management personnel (KMP) of Armour are set out in the following tables.
Directors:
Short-term benefits
Cash salary Cash bonus
and fees
Non-
monetary
Post-employment
benefits
Superannuation
Share-based payments
Equity-
settled
Equity-
Total
Options
settled
Shares
$
$
$
$
$
$
$
30 June 2020
ctors:
N Mather
203,000
S Bizzell
48,333
R Sleeman
48,333
E Uliel
48,333
203,000
48,333
48,333
48,333
Armour has an incentive scheme which rewards employees for contributing to the overall performance of Armour. The underlying
objective of the incentive arrangements is to:
Ensure employees understand Armour's business drivers, objectives, and performance
Strengthen the involvement and focus of employees in achieving the business' objectives
Improve teamwork, communication, and interaction among employees
Under the incentive scheme, Armour may at its discretion, on an annual basis, pay a bonus to permanent employees who are
employed by Armour on the final day of the relevant financial year (that is, 30 June).
The maximum amount of bonus that will be paid to each employee in any year is set out in the employee's contract of employment.
The actual amount of bonus paid to each individual employee will be dependent on:
"
For 70% of the potential maximum award, the individual employee's performance relative to pre-agreed key performance
indicators ('KPIs')
For 30% of the potential maximum award, the overall corporate performance compared to predetermined corporate
performance targets but subject to satisfactory personal performance
For the year ended 30 June 2020 $67,534 of other employment benefits were taken as ordinary shares in lieu of cash (2019:
$99,961). The number of shares awarded was determined with reference to the share value based on 20-day VWAP at the time of
qualification for the share allotment.
SERVICE AGREEMENTS
It is the board's policy that employment agreements are entered into with all executives and employees.
Other Key
Simgement
Personnel:
K Schlobohm
50,000
50,000
B Lingo**
13,800
817
M Laurent****
279,635
20,650
1,288
20,772
5,382
21,287
321,057
R Aden*
322,825
2,012
26,775
21,175
372,787
B Clement**
46,313
2,404
R Fenton**
329,528
48,717
329,528
R Cressey**
230,562
1,934
67,534
N Rayner***
117,054
1,737,716
72,916
321,164
124,001
1,936,540
3,946
48,242
21,134
6,947
73,720
Mr Stubbs retired on 27 November 2018. Mr Cressey was CEO from 21 November 2011 to 23 October 2019.
** Mr Fenton was employed from 16 July 2018 to 23 May 2019. Mr Rayner was employed between 26 November 2018 and 19 July 2019.
*** Mr Jayasuriya was interim CFO from 28 April 2018 to 23 July 2018. Mr Aden commenced employment as CFO on 23 July 2018 until 7 August 2020.
All other directors were not entitled to or awarded any performance-based incentives or bonuses during the current or prior year.
Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details of
these agreements are as follows:
Bradley Lingo
Title: Chief Executive Officer
Agreement commenced: 12 June 2020
Details: Mr Lingo is entitled to a base remuneration of $276,000 per annum, exclusive of superannuation.
Mr Lingo is entitled to participate in any Incentive Plan implemented or established by the Company. Both Armour and Mr Lingo
are entitled to terminate the contract upon giving six (6) months written notice. Armour is entitled to terminate the agreement
immediately upon Mr Lingo's insolvency or certain acts of misconduct. Mr Lingo is entitled to terminate the agreement immediately
upon a significant diminution in his benefits, job content, status, responsibilities, or authority.
Mr Lingo is entitled to a bonus, to be assessed annually by the Board, based on the following weighted KPI's. The base
remuneration for the bonus payment calculation will be a maximum 100% of the sum of $100,000 (Base Amount), calculated on an
annual basis unless otherwise agreed by the Board.
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