Management & Governance

Long term incentives

Shareholders approved two long term incentive plans at the annual general meetings in 2004, the Share Option Plan and the Mining Companies Comparative Plan.

These plans are intended to provide the committee with a means of linking management's rewards to Group performance. Total shareholder return (TSR) was, at the time of the introduction, considered the most appropriate measure of a company's performance for the purpose of share based long term incentives and a TSR performance measure was therefore applied to both plans.

In 2007 the committee introduced a restricted share plan for senior employees below director level ("MSP 2007").

The long term incentives are not pensionable. As foreshadowed in the 2006 Remuneration report, the committee reviewed the long term incentive structure and performance criteria during 2007 and 2008. Proposals for changes to the long term incentive structure will be submitted to Shareholders in 2009.

The existing plans are:

• Share Option Plan (SOP)
• Mining Companies Comparative Plan (MCCP)