IGO Interactive Annual Report 2019

DIRECTORS’ REPORT—REMUNERATION REPORT 30 JUNE 2019 SECTION 1. 2019 OVERVIEW AND DEVELOPMENTS FY19 has been an important year for the Company, we have delivered strong operational performance at our Nova Operation, achieved positive results in the annual employee engagement survey, continued our significant exploration program in the Fraser Range and Northern Territory, successfully completed the divestment of the Long Operation and continued our strategic focus to metals critical to clean energy. This performance is the result of our focus on leadership development and our drive to build a strong and cohesive culture and positions the Company to deliver strong performance in FY20. FY19 was also the third full year since the implementation of the Company’s Total Rewards Philosophy. This philosophy recognises that remuneration and reward is not just about the payment of salary, rather a view of benefits that reward and develop our people to create a holistic value proposition. To this end, along with Company-wide salary benchmarking and the award of a group wide CPI increment (or consideration of) for all roles, the following initiatives were implemented for all employees in FY19: • Improved flexible work options to recognise the importance that the ability to successfully blend work and family commitments has on employee engagement; • Broadening of the Company’s equity offering to all employees with the implementation of a salary sacrifice share plan, including a Company sponsored contribution of up to $2,500 to encourage all employees to share in ownership of the Company and the connection that drives (participation in the plan excludes KMP); • Introduction of a Paid Parental Leave program to increase engagement, retention and to facilitate the combination of work and family responsibilities; • Further consultative work on operational rosters to ensure the Company maximises operational productivity and individual employee flexibility; • Business unit programs to build culture and reinforce the values and behaviours that support our Purpose and drive sustainable performance; and • Strengthening and extension of the Company-wide investment in learning, development and training. At a Board and Executive level, the following changes were made: • Kate Barker, General Counsel and Joanne McDonald, Company Secretary and Head of Corporate Affairs, were appointed to the Executive Leadership Team effective 1 July 2018; • increases in total fixed remuneration (TFR) for KMPs in line with market benchmarking to ensure that Executive fixed remuneration remained competitive within the comparator and broader industry groups for similar roles; and • an increase in LTI award for the Chief Operating Officer from 80% to 90% and the Head of People & Culture and Head of SHEQ & Risk from 50% to 55%. Similarly, for the General Manager-Exploration, Head of Corporate Development, the Company Secretary and Head of Corporate Affairs and the General Counsel the LTI was increased from 20% to 55% due to a reward grade reclassification of their roles. No changes were made to: • Chairman and Non-executive Director remuneration (for the third year in a row); and • the STI component of KMP remuneration. 46 — IGO ANNUAL REPORT 2019