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AXIOM MINING LIMITED
ANNUAL REPORT 2015
101
Notes to the
financial statements
for the year ended 30 September 2015
COMPANY FINANCIAL REPORT
26. Directors remuneration
a. Summary of Directors fees and emoluments
Directors’ remuneration disclosed pursuant to section 383(1)(a) of the Hong Kong Companies Ordinance is as follows:
2015
AU$000
2014
AU$000
Fees
24
50
Other emoluments
–
Salaries
256
433
–
Superannuation
20
38
–
Share-based payment – performance rights*
395
320
695
841
* Performance rights were granted in April 2013 following approval by shareholders at the AGM 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 and Performance rights issued will automatically vest into fully paid ordinary shares upon speci c 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 (‘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 AGM. 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: 6,666,661 performance rights to Mr Ryan Mount, and
833,332 performance rights to Mr Stephen Williams. 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.