b'< DIRECTORS REPORTFixed remunerationFixed remuneration, consisting of base salary, superannuation and non-monetary benefits(if any), is determined by considering the scope of the executives responsibility, importance to the business, competitiveness in the market, and assessed potential. The total remuneration package for executives includes superannuation and other non-cash benefits, to reflect the total employment cost to the company inclusive of any fringe benefits tax.Fixed remuneration is reviewed annually by the Remuneration Committee, based on individual and business unit performance, the overall performance of the consolidated entity, and comparable market remuneration.Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example, motor vehicle benefits) where it does not create any additional costs to the consolidated entity and provides additional value to the executive.The objective of the fixed remuneration component is to attract and retain high quality executives, and to recognise market relativities and statutory requirements.Short-term incentivesThe STI framework provides senior executives with the opportunity to earn an annual cash bonus, up to a maximum amount of 50% of base salary. Clear KPIs have been established by the Remuneration Committee. Achievement of these KPIs gives the executive an opportunity to earna fixed percentage of their maximum STI, subject to final review and approval by the Board.For FY19, the KPIs applied and the applicable percentage of STI were:1.Achievement of the budgeted EBITDA target for the group. The applicable EBITDA target was AUD64.3million. (This KPI is worth 30% of the potential incentive.)2.Achievement of the budgeted revenue target for Star Vegas, in Thai baht terms. The applicable revenue target was THB1.65 billion (25%).3.Achievement of the budgeted revenue target for the Aristo, in Chinese renminbi terms.The applicable revenue target was RMB136.9 million (25%).4.Achievement of a personal KPI relating to the executives individual areas of responsibility (20%).The objective of these KPIs is clearly designed to focus on financial criteria, including top-line revenue growth, while maintaining a focus on disciplined cost control, as expressed through the EBITDA target for the group. In addition, executives also maintained a focus on key non-financial criteria, relating to the personal KPI applicable to the individual executives area of responsibility.During FY19, the first three KPIs were not satisfied. Two executives did satisfy or partially satisfy their personal KPI, and thus are entitled to be paid up to 20% of their potential incentive. Accordingly, two executives forfeited 80% to 90%, and the others forfeited 100%, of theirpotential incentive.DONACO INTERNATIONAL LIMITED 2019 ANNUAL REPORT 23'