executives capable of discharging
their respective responsibilities to
enable the Company to achieve its
business strategy. 
The principles underlying the
remuneration policy are: to
realistically reflect the
responsibilities of executives and
other employees; to be industry
competitive and reasonable; that
a significant portion of
remuneration be at risk against
individual and company
performance and shareholder
wealth creation; that performance,
not failure, be rewarded so that
the Company’s best performers
receive more; and to encourage
executives to manage from the
perspective of the shareholders by
rewarding them for aligning
Company and shareholder returns. 
(b) Remuneration Structure
The Company’s remuneration
structure for its non-award
employees is based upon Target
Total Remuneration (TTR), the
components of which comprise: 
• a fixed component called Fixed
Annual Remuneration (FAR);
and 
two variable components, called: 
• the Short Term Incentive (STI)
and 
• the Long Term Incentive (LTI). 
FAR: comprises salary,
superannuation and benefits; is
quantified by reference to role and
experience; and is industry
benchmarked. 
STI is represented as a percentage
of base remuneration which is “at
risk” . The STI consists of an
annual cash bonus paid to reward
performance based on a mix of
Company performance and
individual performance measured
against annual scorecards with
target and stretch performance
criteria determined in advance
each year. 
LTI: in relation to executive
remuneration includes a long term
performance based component in
the form of equity participation
through the Santos Executive
Share Option Plan (SESOP) and
the Santos Employee Share
Purchase Plan (SESPP).
Participation is determined by the
Board, on recommendation of the
Remuneration Committee, and
only applies to executives who are
DIRECTORS’ AND SENIOR EXECUTIVES’
REMUNERATION
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