Year closes at 50c exactly, page-13

Resolution 3 seeks to amend the employee share option plan that was approved on 18 April 2016 to allow for the issue of performance rights OR options. In the clarification that the company announced, it was indicated that the purpose of the resolution is to effectively move the company to a performance reward structure that is more aligned with the direction that the company is heading. There appears to be some misunderstanding of the intent of the resolution and in some case a belief that the Directors are simply trying to push through a pay rise to feather their own nest without needing shareholder approval for the issue of the performance rights or the options under this proposed plan. Issue of performance rights and options to Directors will still require approval by shareholders, this is a requirement of the Corporations Act and the Listing Rules. This resolution does not change that and in fact cannot change the provisions enshrined in statute.

IMO the proposed plan will relate directly to employees and will have KPIs attached to them. You cannot have performance rights without having a target against which to measure the performance. Whilst it would be good to know what the KPIs are, it is quite feasible that these are commercial in confidence and form part of an employment contract. Anyone who has worked in the corporate sector or government will be familiar with PPR processes. The inclusion of the performance rights allows the company flexibility in rewarding employees for meeting agreed performance targets. In my experience in recruiting high calibre staff, one consideration is what can the company offer to attract, but just as importantly retain, the highest calibre candidates.

All IMO