Axiom 2014 Annual Report - page 111

Notes to the Financial Statements
for the year ended 30 September 2014
109
2014 Annual Report
23. Directors remuneration
a. Summary of Directors fees and emoluments
The remuneration of the Company’s Directors pursuant to section 78 of Schedule 11 to the Hong Kong Companies
Ordinance (Cap. 622), with reference to section 161 of the predecessor Hong Kong Companies Ordinance (Cap. 32),
is as follows:
2014
$000
2013
$000
Directors fees
50
59
Other emoluments
 – Salaries
433
477
 – Superannuation
38
34
 – Share-based payment – performance rights *
320
–
841
570
* Performance rights were granted in April 2013 following approval by shareholders at the Annual General Meeting held on 22 April 2013.
The performance rights are charged to expense over the life of the rights. The expense in relation to the performance rights is calculated
as fair value using the Black-Scholes model.
Performance rights issued will automatically vest into fully paid ordinary shares upon specific conditions being achieved. The
performance condition is a market hurdle as disclosed in part (c) Performance rights plan of the remuneration report. The amounts
that appear are amounts required under Australian Accounting Standards to be expensed by the Company in respect of the allocation
of long term incentives. Whether or not these performance rights are received will depend on achieving appropriate vesting conditions
as discussed above. No performance rights were exercised during the year.
b. Performance rights plan
Director, Executive and Employee Performance Rights Plan
The establishment of the Axiom Mining Limited Director and Executive Performance Right Plan was approved by
shareholders at the 30 July 2010 Extraordinary General meeting and refreshed at 22 April 2013 Annual General Meeting.
The Director and Executive Performance Right Plan provides:
––
appropriate incentives for the Board and management;
––
to align the economic interests of the Board and management with shareholders;
––
to keep the Board and management focused on the long term growth of the Company; and
––
to increase shareholder value by achieving certain milestones.
Under the plan, participants are granted rights that vest if certain performance conditions are met. Participation in
the plan is at the Board’s discretion and no individual has a contractual right to participate in the plan or to receive
any guaranteed benefits.
When exercisable, each right is convertible into one ordinary share for no consideration.
At the AGM on 22 April 2013, shareholders approved the issue of: 100,000,000 performance rights to Mr Ryan Mount;
10,000,000 performance rights to Mr Stephen Williams; and 2,000,000 to Mr Neil Stuart. The performance rights are
subject to Volume Weighted Average Price (“VWAP”) hurdles and will vest only after the 30 day VWAP has exceeded
the relevant hurdles.
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