DONACO INTERNATIONAL LIMITED 2018 ANNUAL REPORT 24 25 DONACO INTERNATIONAL LIMITED 2018 ANNUAL REPORT SHARE-BASED COMPENSATION Shares 1,781,429 shares were granted as part of compensation during the year ended 30 June 2018. Options There were no options issued as part of compensation during the year ended 30 June 2018. Options granted carry no dividend or voting rights. The number of options over ordinary shares granted to and vested by directors and other key management personnel as part of compensation during the year ended 30 June 2018 are shown below. Service agreements Remuneration and other terms of employment for the Managing Director, Chief Financial Officer and the other key management personnel are formalised in contracts of employment. The service agreements specify the components of remuneration, benefits and notice periods. The specified executives are employed under contracts with no fixed term. The company may terminate the contracts immediately if the executive is guilty of serious misconduct or wilful neglect of duties. Otherwise, the company may terminate the contracts by giving three months’ notice or paying three months’ salary, or six months in the case of Mr Reichel. In the case of Mr Lim, termination for any reason other than just cause will result in a termination payment of 24 months’ base salary (subject to shareholder approval). Criteria for performance-based remuneration The STI program is designed to align the targets of executives with the targets of the consolidated entity. STI payments are granted to executives based on specific annual targets and KPIs being achieved. The Board, advised by the Remuneration Committee, applied these criteria in determining the award of performance-based remuneration during the year. Performance-based bonuses were paid in October 2017. $765,226 cash bonuses were awarded to the executive directors and other key management personnel. A break up of the bonuses paid is in the tables above. For performance during FY18, the relevant criteria for the award of bonuses relate to revenue growth at each operating business, namely the Star Vegas and the Aristo International Hotel, as well as the achievement of budgeted EBITDA targets for the consolidated entity, and a personal KPI for each executive. DIRECTORS’ REPORT DIRECTORS’ REPORT The proportion of the cash bonus paid/payable or forfeited is shown below. The proportion of the share options granted or forfeited is shown below. The proportion of the shares granted or forfeited is shown below. In relation to performance during FY18, the proportions of the cash bonus paid/payable or forfeited are shown below. CASH BONUS PAID/PAYABLE CASH BONUS FORFEITED Name 2018 2017 2018 2017 % % % % Executive Directors Lim K Y 100 100 – – B P Reichel 100 100 – – Other key management personnel Goh K B 100 100 – – Chong K Y 100 100 – – A Asavanund – – – – CASH BONUS PAID/PAYABLE CASH BONUS FORFEITED Name 2019 2019 % % Executive Directors Lim K Y – 100 B P Reichel 20 80 Other key management personnel Goh K B – 100 Chong K Y 20 80 SHARE OPTIONS GRANTED SHARE OPTIONS FORFEITED Name 2018 2017 2018 2017 Executive Directors Lim K Y – – – – B P Reichel – – – – Other key management personnel Goh K B – – – – SHARES GRANTED SHARES FORFEITED Name 2018 2017 2018 2017 Executive Directors Lim K Y 784,872 – – – B P Reichel 396,166 – – – Other key management personnel Goh K B 300,320 – – – Chong K Y 300,071 – – – NO. OF OPTIONS GRANTED DURING FY18 NO. OF OPTIONS GRANTED DURING FY17 NO. OF OPTIONS VESTED DURING FY18 NO. OF OPTIONS VESTED DURING FY17 Name Lim K Y – – 634,828 872,059 B P Reichel – – 317,414 496,744 Goh K B – – 130,700 552,020