Speciality Metals International Limited Annual Report 2019

Page | 26 DIRECTORS’ REPORT 1 A.J. Morgan resigned as CEO and Managing Director on 14 November 2017 2 D.W. Clark ceased being Company Secretary/CFO on 31 January 2019. 3 A.M. Wing appointed as Company Secretary on 1 February 2019. 4 The Performance Rights were fully expensed during the 2018/2019 financial year due to the vesting condition relating to the completion of the acquisition of Mt Carbine Quarries and associated mining leases being satisfied on 28 June 2019. The shares were issued to Directors on 2 August 2019. Options and shares do not represent cash payments to Directors or Senior Executives and performance rights/share options granted may or may not be exercised by the Directors or Executives. (d) Cash Bonuses A $30,000 cash bonus was paid to the Executive Chairman during June 2019. (e) Equity Instruments The Company rewards Directors and Executives for their performance and aligns their remuneration with the creation of shareholder wealth by issuing shares, options or performance rights. Share-based compensation is at the discretion of the Board and no individual has a contractual right to participate in any share-based plan or receive any guaranteed benefits. 2019 Short-term employee benefits – cash salary and fees $ Post- employment Super- annuation $ Long – term employee benefits $ Share-based payments Total $ % Performance Based Shares $ Performance Rights and Options 4 $ Directors R.H. Krause 150,000 - - - 195,737 345,737 56.6% S. Layton 48,000 65,246 113,246 57.6% R.W. Nice 16,000 - - - 65,246 81,246 80.3% Executives A.M. Wing 3 D.W. Clark 2 20,000 29,100 - - - - - - - - 20,000 29,100 0.0% 0.0% Total key management personnel compensation 263,100 - - - 326,229 589,329