Page 25 - Sun Resources 2014 Annual Report

Remuneration Consultants are not used by the
Company.
As predominately an exploration entity, performance
outcomes are uncertain, notwithstanding endeavour.
As such, remuneration packages are not linked to profit
performance. Present policy is to reward successful
performance via incentive options that are priced on market
conditions at the time of issue. The number of options
granted is at the full discretion of the Board.
The options are not issued in relation to past performance,
but are considered to promote continuity of employment
and provide additional incentive to Executive Officers to
increase shareholder wealth.
Sun Resource’s security trading policy provides acceptable
transactions in dealing with the Company’s securities,
including shares and options. The full policy can be read on
the Company’s website.
The Executive Directors receive a superannuation guarantee
contribution required by the government, which is 9.25%.
Some individuals, however, have chosen to sacrifice part of
their salary to increase payments towards superannuation.
All remuneration paid to Directors and executives is valued
at the cost to the Company and expensed.
Shares given to Directors and executives are valued as the
difference between the market price of those shares and
the amount paid by the Director or executive. Options are
valued using the Black-Scholes model.
Non-Executive Remuneration Policy
The Board policy is to remunerate Non-Executive Directors
at market rates for time, commitment and responsibilities.
The remuneration committee determines payments to the
Non-Executive Directors and reviews their remuneration
annually, based on market practice, duties and accountability.
Independent external advice is sought when required. Fees for
Non-Executive Directors are not linked to the performance of
the consolidated entity. However, to align Directors’ interests
with shareholder interests, the Directors are encouraged to
hold shares in the company. The maximum aggregate amount
of fees (inclusive of the 9.25% superannuation guarantee
contribution required by government) that can be paid to
Directors is currently $400,000.
Executive Officers
The Board’s policy for determining the nature and amount of
compensation of key management for the Group is as follows:
The compensation structure for Executive Officers is
based on a number of factors, including length of service,
particular experience of the individual concerned, and overall
performance of the Company. The contracts for service
between the Company and Executive Officers are on a
continuing basis.
Upon retirement, Executive Officers are paid employee
benefit entitlements accrued to the date of retirement. The
remuneration committee recommends the proportion of fixed
and variable compensation (if applicable) for each Executive
Officers which is approved by the Board.
B Details of Remuneration (audited)
Amounts of remuneration
Details of the remuneration of the Directors and Other Key
Management Personnel of Sun Resources are set out in the
following tables:
The Key Management Personnel included the Directors who
had the responsibility for planning, directing and controlling the
activities of the entity during the financial year:
i) Chairman - Non-Executive
Dr W G Martinick (until 7 November 2013)
Prof I R Plimer (from 7 November 2013)
ii) Executive Directors
Dr G van Ek - Managing Director (from 20 March 2013)
Mr M A Battrick - Executive Director, Technical (until 23
September 2013)
iii) Non-Executive Directors and deemed independent
Mr D Kestrel (from 1 February 2012)
Dr W G Martinick
iv) Non-Executive Director and deemed not independent
Mr J D Kenny - (until 19 November 2013)
(v) Other Key Management Personnel
Mr M A Battrick - General Manager, Technical (from 23
September 2013)
Mr S Bayford - Exploration Manager (until 1 July 2013)
Mr S D Smith - US Vice President, Operations (from 11
February 2014)
Mr C Basson - Chief Financial Officer and Company Secretary
DIRECTORS’ REPORT
SUN RESOURCES ANNUAL REPORT 2014  23