Directors’ Report
52
www.kingsgate.com.au
The following summarises the performance of the Group over the last five years:
2009 2010 2011 2012 2013
Revenue (‘000s) 113,015 175,480 172,356 357,372 329,282
Net profit / (loss) after income tax (‘000s) 32,522 73,066 20,879 75,006 (323,726)
Share price at year end ($ / share) 6.70 9.47 8.00 4.85 1.265
Dividends paid (cent / share) 15.0 35.0 15.0 20.0 5.0
KMP short term employee benefits 3,882 2,943 4,459 4,456 4,671
Short-Term Incentives
Effective from 1 July 2012, the Group implemented an STI Plan. The objectives of the STI Plan are to link the remuneration of certain executives to their 
performance and the performance of the Group. The Board set key performance measures and indicators for individual executives on an annual basis that 
reinforce the Group’s business plan and targets for the year.
Key features of the STI Plan are outlined in the following table.
Overview of the STI Plan
What is the STI plan and 
who participates?
The STI Plan is a potential annual reward for eligible executive key management personnel for achievement of predetermined individual 
key performance indicators (KPIs) aligned to the achievement of business objectives for the assessment period (financial year 
commencing 1 July).
How much can the  
executives earn under  
the STI Plan?
Threshold – Represents the minimum acceptable level of performance that needs to be achieved before any Individual Award would be 
payable in relation to that Performance Measure.  
Managing Director / CEO – up to 15% of TFR, COO & CFO – up to 12.5% of TFR, Other Key Management Personnel – up to 10% of TFR.
Target – Represents a challenging but achievable level of performance relative to past and otherwise expected achievements. It will 
normally be the budget level for financial and other quantitative performance objectives. 
Managing Director / CEO – up to 30% of TFR, COO & CFO – up to 25% of TFR, Other Key Management Personnel – up to 20% of TFR.
Stretch (Maximum)  – Represents a clearly outstanding level of performance which is evident to all as a very high level of achievement.  
Managing Director / CEO – up to 60% of TFR, COO & CFO – up to 50% of TFR, Other Key Management Personnel – up to 40% of TFR.
(TFR	-	Total	Fixed	Remuneration)
What are the  
performance conditions?
For Key Management Personnel between 70% – 80% of potential STI weighting (dependent upon role) is assessed against specific 
predetermined KPIs by role with 20% – 30% being based on company performance indicators.
How are performance 
targets set and 
assessed?
Individual performance targets are set by the identification of key achievements required by role in order to meet business objectives 
determined for the upcoming assessment period in advance. The criteria for Key Management Personnel are recommended by the 
Managing Director/CEO for sign off by the Remuneration Committee and in the case of the Managing Director/CEO, are recommended 
by the Chairman by sign off by the Remuneration Committee. 
The relative achievement at the end of the financial period is determined by the above authorities with final sign off by the Remuneration 
Committee after confirmation of financial results and individual/company performance against established criteria.
The Remuneration Committee is responsible for assessing whether the KPIs are met. To assist in this assessment, the committee 
receives detailed reports on performance from management which are verified by independent remuneration consultants if required. 
The committee has the discretion to adjust STIs in light of unexpected or unintended circumstances.
How is the STI delivered? STIs are paid in cash after the conclusion of the assessment period and confirmation of financial results/individual performance and 
subject to tax in accordance with prevailing Australian tax laws.
What happens in the 
event of cessation of 
employment?