Remuneration Rates for Directors to Rise

SAV Shareholders at the 2013 AGM voted to increase the amount of remuneration that may be paid in any financial year to the Company’s non-executive directors.

The increase was recommended by the Board following a comprehensive review of the current policy and rates to ensure directors were being paid “fairly and equitably”.

The study examined the remuneration policies of companies of similar size and industry base and also looked at the broader corporate governance and remuneration levels.

Managing Director, Geoff Breust, told the AGM most companies review the fees paid to non-executive directors on an annual basis or, at most, every two years, yet the remuneration provided to SAV directors has not changed since the board was established in 2009.

“The study also found SAV directors commit an estimated 196 hours annually to their board duties, yet their average annual remuneration is $3,000, which equates to an hourly rate of $15.30,” Geoff said.

“This is substantially below that paid to directors in similar organisations and across industry generally.”

The maximum aggregate will increase from $23,000 to $75,000 annually based on the below payment structure.

     ROLE

       CURRENT FEE

          NEW FEE

    Chairman

 $  500 per meeting

   $1,200 per meeting

    Deputy Chairman

 $  300 per meeting

   $   800 per meeting*

    Other Directors

 $  300 per meeting

   $   800 per meeting

* Deputy Chairman to receive rate of $1,200 per monthly meeting when filling in for the SAV Chairman

The AGM also voted to compensate directors for travel expenses they incur in carrying out their Board related duties (at the appropriate Australian Tax Office standard rates) and for other ongoing expenses for Board related matters, including accommodation and meals.