IGO Interactive Annual Report 2019

DIRECTORS’ REPORT—REMUNERATION REPORT 30 JUNE 2019 SECTION 2. REMUNERATION AT IGO 2.1 REMUNERATION GOVERNANCE OVERVIEW The Board recognises that the success of the business depends upon the quality of its people. To ensure the Company continues to succeed and grow, it must attract, motivate and retain highly skilled Directors, Executives and employees and as such has an active People & Performance Committee to ensure that people, performance and culture are a priority. The Committee, chaired by Keith Spence, held four meetings during FY19. Ms Bakker and Messrs Bilbe and Buck are also Committee members and Messrs Clifford and Warburton were Committee members until 25 October 2018. The Managing Director was invited to attend all meetings which consider the remuneration strategy of the Group and recommendations in relation to Executives. The structure of the relationship between the Board, Committee and remuneration principles is explained in the following table: BOARD The Board delegates responsibility in relation to remuneration to the People & Performance Committee (Committee) which operates in accordance with the Company’s People & Performance Committee Charter and the requirements of the Corporations Act 2001 and its regulations. PEOPLE & PERFORMANCE COMMITTEE IGO REMUNERATION PRINCIPLES The Committee is made up entirely of independent non-executive directors. The Committee is charged with assisting the Board by reviewing, on an annual basis, and making appropriate recommendations on the following: • the Company’s remuneration policy and structure, to ensure that it remains aligned to business needs and meets the Company’s remuneration principles; • Executive remuneration policy for KMP; • equity-based remuneration plans for KMP and other employees; • diversity and culture strategy, policy, practices and performance; • superannuation arrangements for the organisation; and • remuneration equity for all employees across the Group. Remuneration policy is transparent with information communicated to all employees to create a high level of understanding of the link between pay, performance and delivery against Company objectives and values. “At Risk” components are designed to motivate and incentivise for high performance and are aligned with the Company’s strategic and business objectives to create short and long-term shareholder value. Learning and development is a quantifiable and essential component of all roles. Career planning is a valued component of the total reward philosophy and forms part of all development plans. Work/life programs aim to provide balance and additional value for people at all levels of the organisation. Equity in the business is important for all employees and prioritised when setting and reviewing remuneration policy and practice. EXTERNAL ADVICE AND BENCHMARKING The Committee undertakes a broad review of data derived from remuneration consultants who track industry levels to ensure it is fully informed when making remuneration decisions. During the year ended 30 June 2019, no remuneration recommendations, as defined by the Corporations Act 2001 , were provided by remuneration consultants. However, the Committee did utilise data provided by AON Hewitt McDonald ($5,030), Mercer Consulting ($4,700) and BDO Reward (WA) Pty Limited ($7,400) regarding salaries and benefits across the organisation and a third-party benchmark of the CEO Remuneration. Further information on the Committee’s role, responsibilities and membership can be found at www.igo.com.au . IGO ANNUAL REPORT 2019 — 47