20974 29Metals AR23 WEB V1 - Flipbook - Page 127
2023 key
results
Chair letter and
CEO report
About
29Metals
Our
assets
Sustainability
& ESG Report
Mineral Resources
and Ore Reserves
Annual
Financial Report
123
29Metals Appendix 4E and Annual Financial Report for 29Metals Limited and its Controlled Entities for the year ended 31 December 2023
48
Directors’ Report
Remuneration Report
ϮϬϮϯ^d/KƵƚĐŽŵĞƐ
s noted above having regard to business performance during the eporting Period the oard has exercised its discretions under the STI to amend how
the STI outcomes are delivered substantially reducing the cash component and increasing the equity component.
In addition to incentivise executive KMPs to deliver significant improvement in performance the share price applied to calculate the number of
performance rights to be awarded to executive KMPs including the Managing irector CE sub ect to shareholder approval will be $0. . In setting
the performance rights price the oard has adopted the price paid by shareholders to acquire rights in the entitlement offer completed in 2023 which
disappointingly for the oard and shareholders sits at a significant premium to the current share price. This approach differs from the prior year and TI
performance rights awards where the
P for the month of ecember prior to the award was applied. In practical terms this results in the face value
per performance right to be awarded under the 2023 STI being at a 2 0 premium to the trading price of 2 Metals shares as at the close of trading on
ebruary 202 . In so doing there is a direct lin between the realised 2023 STI outcome for executive KMPs and improvement in shareholder value
because in the absence of a material improvement in share price over 202 the future realised value of performance rights awarded under the 2023 STI
will be significantly lower than the face value at the time of award.
The tables below set out
▪
executive KMP outcomes under the STI for the eporting Period including the split of STI outcomes to be delivered in the form of cash and
deferred as equity performance rights respectively and
▪
an indicative comparison of the face value of the 2023 STI outcome for executive KMPs to a nominal realised value at the recent share price.
STI KPIs
2023 STI award
Executive KMP
Peter lbert
STI opportunity
for ‘at target’
performance
(% TFR)
Company
(85%)
Personal
(15%)
Assessed
Performance
Assessed
Performance
00
2023 STI Outcome
% of STI
Opportunity
% of TFR
Total STI
Outcome
(face value) 4
Delivered as
cash ($) 4
3
33
. 0
. 0
$
Ed Cooney
3
0
.
.
$2
$ 0
Peter erbert
3
00
.
.
$2
$ 2
Clifford Tuc
3
00
.
.
$2 3 02
$ 2
.
2.
3.
.
0
Delivered as
equity1, 4
(face value)
$
3
0
$22
Performance
Rights3
(No. of PRs)
0
0
03 0 0
332
$2 2 223
3
0
$2
3
3
0 2
Equity component of the 2023 STI outcome will be in the form of performance rights awarded under the Company’s Equity Incentive Plan ules.
The proposed award of performance rights to Mr lbert Managing irector CE for the equity component of the 2023 STI outcome is sub ect to shareholder
approval to be sought at the 202
M. In the event shareholder approval is not obtained the equity component will be delivered as cash consistent with the
outcome that would have applied to previous awards to Mr lbert had shareholder approval been not successfully obtained which payment is also sub ect to the
2023 STI vesting period.
The number of performance rights to be awarded or proposed to be awarded in the case of Mr lbert under the 2023 STI has been determined by dividing the cash
value of the equity component of the 2023 STI outcome by $0.
rounded down to the nearest performance right .
Sub ect to rounding.
Comparison of2023 STI award outcomes
Face value of 2023 STI
award outcome1
$
Ed Cooney
$22
Peter erbert
$2 2 223
$ 3 02
$
Clifford Tuc
$2
$ 2
$
2.
$2 2
Variance
Peter lbert
.
0
Nominal ‘realised’ value of
2023 STI award outcome at
time of award2
0
0 2
$
03
$3
2
$
2
ace value of 2023 STI award outcomes as set out in preceding table which applies the $0. price per performance right determined by the oard for the purposes
of the award. efer to preceding table for details regarding the number of performance rights to be awarded to executive KMPs under the 2023 STI which award in
the case of Mr lbert Managing irector CE is sub ect to shareholder approval to be sought at the 202
M.
Nominal ‘realised’ value of 2023 STI award outcomes for executive KMPs applying a price per performance right of $0.2 per performance right being the share
price for 2 Metals shares at the close of trading on Monday
ebruary 202 for indicative purposes. This price per performance right is equivalent to the fair value
per 2023 STI performance right calculated for accounting purposes. efer to Note 3 c ii to the Consolidated inancial Statements for the year ended 3 ecember
2023 for further information regarding the calculation of ĨĂŝƌǀĂůƵĞfor share based payments.
The maximum amount to be recognised in future periods in respect of performance rights awarded under the 2023 STI is $ 0 0
calculated at 3
ecember 2023 . efer to Note 3 c ii to the Consolidated inancial Statements for further information regarding recognition and measurement of
share based payments.
48
