Cellmid 2018 Annual Report 21
The factors that are considered to affect total shareholders return (‘TSR’) are summarised below:
* On 23 November 2017, the Group completed a twenty to one share consolidation. Share price and earnings per share are
quoted on consolidated shares.
$ $ $ $ $
2018 2017 2016 2015 2014
Share price at financial year end* 0.47 0.50 0.66 0.60 0.52
Total dividends declared - - - - -
Basic earnings per share* (6.74) (8.79) (7.60) (8.60) (4.20)
Remuneration structure
In accordance with best practice corporate governance, the structure of non-executive director and senior executive remuneration
is separate and distinct.
Non-executive director remuneration
The Board seeks to set aggregate remuneration at a level that provides the Group with the ability to attract and retain directors of
the highest calibre, while incurring costs that are acceptable to shareholders.
Each non-executive director receives a fixed fee for being a Director of the Group.
The Constitution and the ASX Listing Rules specify that the maximum aggregate remuneration of Non-executive directors shall be
determined from time to time by a general meeting of shareholders. At the general meeting of shareholders in 2005, the maximum
amount was set at $300,000 per annum. In 2018, the Group paid Non-executive directors a total of $210,202 ($171,175 in 2017).
The amount of aggregate remuneration sought to be approved by shareholders and the fixed fees paid to directors are reviewed
annually. The Board considers fees paid to non-executive directors of comparable companies when undertaking the review.
Executive remuneration
The Group aims to reward executives with a level and mix of remuneration commensurate with their position and responsibilities
within the Group and so as to:
reward executives for Group and individual performance against targets set by reference to appropriate benchmarks;
align the interests of executives with those of shareholders; and
ensure total remuneration is competitive by market standards.
A policy of the Board is the establishment of employment or consulting contracts with the Chief Executive Officer and other senior
executives. Remuneration consists of fixed remuneration under an employment or consultancy agreement and may include long
term equity-based incentives that are subject to satisfaction of performance conditions. Details of these performance conditions
are outlined in the equity-based payments section of this remuneration report. The equity-based incentives are intended to retain
key executives and reward performance against agreed performance objectives.
Fixed remuneration
The level of fixed remuneration is set so as to provide a base level of remuneration that is both appropriate to the position and
competitive in the market. Fixed remuneration is reviewed annually by the Board and the process consists of a review of Group
wide and individual performance, relevant comparative remuneration in the market, and internal and (where appropriate) external
advice on policies and practices.
Senior executives are given the opportunity to receive their fixed (primary) remuneration in a variety of forms including cash and
expense payment plans, such that the manner of payment chosen is optimal for the recipient without creating additional cost for
the Group.