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DIRECTORS’ REPORT
Annual Report 2015 81
Directors' report
30 June 2015
Remuneration report (continued)
(c) Elements of remuneration (continued)
(iii)
Long-term incentives (continued)
Share rights granted after 1 July 2014 (continued)
The peer group is to comprise the constituents of the S&P ASX 300 Metals and Mining Index who are engaged in gold
and/or base metals mining in Australia and have the closest market capitalisation to the Company.
The vesting schedule of the performance rights subject to relative TSR testing is as follows:
Relative TSR performance
Level of vesting
Less than 50th percentile
Zero
Between 50th and 75th percentile
Pro-rata straight line percentage between 50% and 100%
75th percentile or better
100%
The Company's TSR performance for share rights issued during the current financial year will be assessed against the
following 22 peer group companies:
Peer companies
* Aditya Birla Minerals Ltd
* Oz Minerals Ltd
* Alacer Gold Corp.
* PanAust Ltd
* Beadell Resources Ltd
* Panoramic Resources Ltd
* Cudeco Ltd
* Perseus Mining Limited
* Evolution Mining Limited
* Regis Resources Limited
* Kingsgate Consolidated Limited
* Resolute Mining Limited
* Medusa Mining Ltd
* Saracen Mineral Holdings Limited
* Metals X Limited
* Sandfire Resources Ltd
* Mincor Resources NL
* Silver Lake Resources Limited
* Northern Star Resources Limited
* Sirius Resources NL
* Oceana Gold Limited
* Western Areas Ltd
Share rights granted prior to 30 June 2014
Vesting of the performance rights granted to executive directors and executives prior to 30 June 2014 is subject to a
combination of the Company’s shareholder return and return on equity. The performance rights will vest if, over the
three year measurement period, the following performance hurdles are achieved:
Shareholder return
The vesting of 75% of the performance rights at the end of the third year will be based on measuring the actual
shareholder return over the three year period compared with the change in the S&P ASX 300 Metals and Mining Index
("Index") over that same period. The portion of performance rights (75% of the total) that will vest based on the
comparative shareholder return will be:
Shareholder return
Level of vesting
100% of the Index
25%
Between 100% and 115% of the Index
Pro-rata straight line percentage
115% of the Index or greater
100%
Return on equity
The vesting of the remaining 25% of the performance rights at the end of the third year will be based on the average
return on equity over the three year period compared with the average target return on equity as set by the Board for the
same period.
Return on equity ("ROE") for each year will be calculated in accordance with the following formula:
ROE = Net profit after tax / Total shareholders’ equity
The target ROE will be set each year by the Board as part of the budget approval process for the following year. The
target ROE used in previous financial years was 10%. The portion of performance rights (25% of the total) that will vest
based on the comparative return on equity will be:
Independence Group NL
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