Directors' Remuneration Report

Salaries and benefits in kind for Executive Directors

In setting the base salary of each Executive Director, the Committee takes into account market competitiveness and the performance of each individual Executive Director, any changes in position or responsibility and pay and conditions throughout the Group. This structure is consistent with the reward structure in place for executives below Board level, and that used by comparable companies. In addition to base salary, the Executive Directors also receive benefits in kind. In 2005, the rate of base salary increases for Executive Directors were between 5% and 18%. These included adjustments related to changing circumstances. As advised in the 2004 report, Todd Stitzer received a salary increase of $100,000 following John Sunderland ceasing to be an executive, in recognition of his increased responsibilities. Bob Stack received an increase of $82,500 in September 2005 reflecting the elimination of expatriate allowances from that date. Salaries received by the Executive Directors in the 2005 financial year are shown in the Directors’ remuneration tables.