- Annual Review 2006
- Overview
- Chairman's message
- Interview with the chief executive
- Selected financial data
- Features
- Review of operations
- Financial information by business unit
- Summary financial statements
- Australian Corporations Act - summary of ASIC relief
- Independent auditors' statement
- Management overview
- Directors' report
- Remuneration report
- Remuneration committee
- Corporate governance
- Executive remuneration
- Remuneration components
- Short term incentive plan (STIP)
- Long term incentives
- Share Option Plan (SOP)
- Mining Companies Comparative Plan (MCCP)
- New restricted share plan
- Post employment benefits
- United Kingdom
- Australia
- Other pensionable benefits
- Performance and non performance related remuneration
- Share based remuneration not dependent on performance
- Service contracts
- Termination payments
- Shareholding policy
- Remuneration paid in 2006
- Other disclosures
- Remuneration report tables
- Corporate governance
- Audit committee charter
- Shareholder information
- Useful addresses
- Investor calendar
- Publications
Short term incentive plan (STIP)
STIP is a cash bonus plan, designed to support overall remuneration policy by:
- focusing participants on achieving calendar year performance goals which contribute to sustainable shareholder value; and
- providing significant bonus differential based on performance against challenging personal, business, and other targets, including safety.
The Remuneration committee reviews and approves performance targets and objectives for executives annually. Executive directors' STIP payments are linked to three performance criteria: Group financial performance, Group safety performance and personal performance. Product group chief executives' STIP payments are linked to Group and product group financial performance, product group safety performance and personal performance. Group and product group financial performance is partly measured on an actual underlying earnings basis and partly on a basis normalised for fluctuations of market prices and exchange rates.
The target level of bonus for executives for 2007 is 60 per cent of salary, the same as 2006. Executives may receive up to twice their target (ie up to 120 per cent of salary) for exceptional performance against all criteria.
Details relating to STIP awards for 2006 are on the Remuneration paid in 2006 page.
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