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McPHERSON’S LIMITED

 ANNUAL REPORT 2015

(K) REMUNERATION REPORT (CONTINUED)

Contractual arrangements for executive KMP (continued)

The major provisions of the employment agreements relating to remuneration for the executives considered to be key management personnel are 

set out below.

NAME

TERM OF AGREEMENT

BASE SALARY INCLUDING 

SUPERANNUATION*

TERMINATION BENEFIT

P.J. Maguire
Managing Director

On-going
Performance rights and/or options over ordinary 
shares in the Company may be subscribed for on 
the terms and conditions set out in the contract 
and subject to shareholder approval.

$590,000

Contract may be terminated on 12 months’ notice 
by the Company and on 6 months’ notice by the 
executive.

S.K.S. Chan
Managing Director
McPherson’s Consumer Products 
(HK) Limited

On-going

HKD$2,770,134
(AUD$465,287)

Contract may be terminated on 3 months’ notice 
by either the Company or executive.

P Witheridge
Chief Financial Officer and 
Company Secretary

On-going

$355,000

Contract may be terminated on 6 months’ notice 
by the Company and on 3 months’ notice by the 
executive.

G.P. Mitchell
General Manager
McPherson’s Consumer Products 
(NZ) Limited

On-going

NZD$337,065
(AUD$298,446)

Contract may be terminated on 6 months’ notice 
by either the Company or executive.

C. J. Muir
Global Supply Chain Director

On-going

$282,100

Contract may be terminated on 1 months’ notice 
by the Company and on 1 months’ notice by the 
executive.

*  Base salaries quoted are for the year ended 30 June 2015; they are reviewed annually by the Nomination and Remuneration Committee.

Share-based compensation

Performance Rights 
The terms and conditions of each grant of performance right affecting remuneration in the current or future reporting periods are set out in the 

table shown below.
Each performance right is entitled to acquire one share for no consideration subject to the satisfaction of the vesting conditions which are based on 

performance and time related conditions. The number of rights that will vest will be determined proportionately on a straight line basis based on the 

compound annual growth rate (CAGR) of the Group’s earnings per share (EPS) over a two to three year period (depending on the terms of the 

issue). The base year EPS to be used in determining whether the vesting conditions have been satisfied is the reported basic EPS for the 30 June 

financial year immediately prior to when the rights were issued adjusted by the Nomination and Remuneration Committee for appropriate non-

recurring items. 
The rights will vest proportionately from no rights vesting if the Group’s EPS CAGR is 3.0% or less to 100% of rights vesting if the Group’s EPS CAGR 

is 8.0% or higher.  The performance rights carry no dividend or voting rights.

NAME

YEAR OF 

GRANT

YEARS IN 

 WHICH RIGHTS 

MAY VEST

NUMBER OF 

RIGHTS 

GRANTED

VALUE OF 

RIGHTS AT 

GRANT DATE

1

NUMBER OF 

 RIGHTS VESTED 

DURING THE 

 YEAR

VESTED %

NUMBER OF 

 RIGHTS 

 FORFEITED  

DURING THE 

 YEAR

VALUE AT 

DATE OF 

FORFEITURE

FORFEITED 

%

P. J. Maguire

2014
2014
2015

2016

2017
2018

96,000
96,000

196,000

$126,720

$115,776

$217,952 

-
-
-

-
-
-

-
-
-

-
-
-

-
-
-

S.K.S. Chan

2014
2014

2016

2017

25,500
25,500

$33,660

$30,753

-
-

-
-

-
-

-
-

-
-

C.J. Muir

2014
2014
2015

2016

2017
2018

19,000
19,000

39,000

$25,080

$22,914

$43,368

-
-
-

-
-
-

-
-
-

-
-
-

-
-
-

P. Witheridge

2014
2014
2015

2016

2017
2018

23,000
23,000

47,000

$30,360

$27,738

$52,264

-
-
-

-
-
-

-
-
-

-
-
-

-
-
-

1. The value at grant date is calculated in accordance with AASB 2 Share-based Payments

DIRECTORS’ REPORT  

CONTINUED