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## REMUNERATION REPORT - continued 

The remuneration of the non-executive directors for the year ending 30 June 2011 is detailed below. 

Table 1 - Annual board and committee fees payable to non-executive directors 

<img src='content_image/145448.jpg'>

Inclusive of statutory superannuation where applicable 

## Directors’ Retirement Benefits 

No retirement benefits are paid to non-executive directors other than the statutory superannuation contributions of 9% required under Australian superannuation guarantee legislation. 

## Policy on executive directors’ and other senior executives’ remuneration 

Perseus aims to reward its executive directors and other senior executives with a level of remuneration commensurate with their position and responsibilities within the Group. In doing so, it aims to: 

• provide competitive rewards that attract, retain and motivate high calibre executives; 

• align executive rewards with the achievement of strategic objectives and performance of the Group and the creation of value for shareholders; 

• ensure total remuneration is competitive and reasonable; and 

• comply with applicable legal requirements and appropriate standards of governance. 

In consultation with external remuneration consultants, the Group has developed an executive remuneration framework that is market competitive and is consistent with the reward strategy of the organisation. 

## Executive remuneration structure 

The executive remuneration framework has two components, namely: 

• fixed salary package including base salary and benefits such as superannuation; and 

• variable remuneration. 

The Group intends to conduct a review of potential incentive plans during the year ended 30 June 2012 to ensure that the variable component of remuneration is appropriately structured taking into account “best practice” in the resources industry and is directly aligned to the achievement of the Group’s financial and strategic objectives. 

## Fixed salary package 

The fixed component of an executive’s remuneration comprises base salary and superannuation contributions. The size of the executive’s salary package is based on the scope of each executive’s role, the level of knowledge, skill and experience required to satisfactorily perform the role and the individual executive’s performance in the role. The proportion of an executive’s total fixed salary package that is paid as superannuation is at the executive’s discretion, subject to compliance with relevant superannuation guarantee legislation. 

The Committee annually reviews each executive’s performance and benchmarks the executive’s salary package against appropriate market comparisons using information and advice provided by external consultants. There are no guarantees of salary increases included in any executive’s employment contract. 

## Variable remuneration 

The objective of providing a variable “at risk” component within executive directors’ and senior executives’ total remuneration packages is to link a proportion of their remuneration directly to the objective of creating shareholder wealth. As such, this element of remuneration is made available to those executives who have a direct impact on the Group’s performance and who are able to influence the generation of shareholder wealth. 

