2021 Annual Report

Directors’ Report — Remuneration report 30 June 2021 EXECUTIVE KMP AT RISK REMUNERATION IN FY21 The at risk components of Executive KMP remuneration at IGO are intended to drive performance and long-term stability in shareholder returns without encouraging undue risk-taking. The mix of fixed and at risk remuneration varies depending on the role and reward grading of Executive KMP and employees. It also depends on the performance of both the Company and the individual. The following is an overview of the total fixed and at risk remuneration for Executive KMP in FY21: Managing Director and CEO Chief Operating Officer Chief Financial Officer Other Executive KMP TFR – 33% STI – 33% LTI – 33% LTI – 31% STI – 31% TFR – 38% LTI – 35% STI – 22% TFR – 43% LTI – 25% STI – 25% TFR – 50% MALUS AND CLAWBACK PROVISION IGO has a malus and clawback provision that allows the Board to reduce or clawback unvested and vested entitlements in certain circumstances, including in the case of fraud, dishonesty, gross misconduct, bringing the Group into disrepute, breach of obligations to the Group, material financial misstatements, where warranted due to risk behaviour, or other circumstances under law or Group policy. The Employee Incentive Plan (EIP) also allows the Board to reduce unvested awards where vesting is not justified or supportable for performance or other specified reasons. IGO STIP OUTLINE FOR FY21 The key elements of the Short-Term Incentive Program (STIP) as it relates to the Company’s Executive KMP is provided below: STIP Opportunity The STIP opportunity offered to each Executive KMP as a percentage of TFR is defined by the individual’s role and reward grade. The STIP opportunity is market benchmarked and reviewed by the Board annually. STIP payments are awarded 50% cash and 50% equity (service rights) on or above threshold performance against a range of business objectives (Company KPI) and individual performance objectives (Individual KPI). Performance Targets The payment of a short-term incentive to Executive KMP is an at risk component of the individual’s total remuneration given that a set of performance targets must be met prior to payment. Each year these targets are based on metrics that are measurable, transparent and achievable, and are designed to motivate and incentivise the Executive KMP to drive to achieve high levels of performance aligned with Company objectives and near-term shareholder value creation. In FY21, the performance targets for KPI assessment reflected the following financial and non-financial components: • Health, Safety, Environment and Community • People and Culture • Production Optimisation and Financial Performance • Growth and Strategy Performance Assessment The Company employs a system of continuous performance feedback to drive Executive KMP performance, which is regularly reviewed by the Board throughout the financial year against the defined KPIs. A final performance assessment occurs annually following the completion of the financial year for each Executive KMP. Executive KMP are assessed on their contribution to the achievement of Company KPIs (80%), individual KPIs (20%) and their demonstrated support for the Company’s values and behaviours. Measurement Period The STIP is an annual program and operates from 1 July to 30 June each year. STIP Deferral Component Service rights issued pursuant to the STIP vest in two tranches, with the first tranche of 50% vesting on the 12 month anniversary of the award date, and the second tranche of 50% on the 24 month anniversary of the award date. Vesting of the service rights is based on a continuous service condition being met and is designed to act as a driver of retention and continuity of medium-term value creation. Termination of Employment In the event that an Executive KMP’s employment terminates prior to the end of a financial year, the Executive KMP may or may not receive a pro-rata payment, depending on the circumstances of the cessation of employment. Outstanding unvested service rights will also be reviewed by the Board and may or may not vest, depending on the circumstances of the Executive KMP’s cessation of employment. Board Discretion The payments of all STIs are subject to Board approval. The Board has the discretion to adjust remuneration outcomes higher or lower to prevent any inappropriate reward outcomes, including reducing (down to zero, if appropriate) any STI payment. 54 —IGO ANNUAL REPORT 2021