Directors’ Report (continued)  Emoluments of Board Members and Senior Executives (continued)  Emoluments of Directors of Harvey Norman Holdings Limited (Parent Entity):  Emoluments of the five most highly paid executive officers of the company and consolidated entity:  ANNUAL EMOLUMENTS  LONG TERM EMOLUMENTS  BASE  SALARY  $  OTHER  $  SUPER CONTRIBUTIONS  $  OPTIONS  GRANTED  (number)  AMORTISATION  AMOUNT  $  TOTAL  $  G. Harvey  244,450  10,400  5,950  -(a)  -(a)  260,800  K.L. Page  232,840  29,557  5,000  -(a)  -(a)  267,397  R.J. Skippen  489,481  -  10,519  -(a)  -(a)  500,000  A.B. Brew  196,834  66,174  8,803  -(a)  -(a)  271,811  J.E. Slack-Smith  474,481  15,000  10,519  2,000,000(b)  971,161(c)  1,471,161  S.P. Hauville  442,975  15,000  42,025  2,000,000(b)  971,161(c)  1,471,161  M.J Harvey  18,349  -  1,651  -  -  20,000  C.H. Brown  48,349  -  4,351  -  -  52,700  I.J. Norman  18,349  -  1,651  -  -  20,000  K.W. Gunderson-Briggs  -  -  -  -  -  -  The listed parent entity, Harvey Norman Holdings Limited, does not have any employees. No options were issued by  Harvey Norman Holdings Limited during the current financial year. Details of the terms, conditions and value of options granted during the period are also set out in Notes 26 and 32 of  the financial statements.  Executives are those directly accountable and responsible for the operational management and strategic direction of  the company and consolidated entity. The terms “director” and “officer” have been treated as mutually exclusive for  the purposes of this disclosure. (a) The number of options disclosed in the above table represents those options that have been issued to the  executive officers that have not vested as at 30 June 2003. These executive officers were executive officers of  Rebel Sport Limited and these options represent options to subscribe for ordinary shares of Rebel Sport Limited.  (b) Options have been valued at grant date, using the Black-Scholes option pricing model which takes account of  factors such as the option exercise price, the current level and volatility of the underlying share price and the time  to maturity of the option. The value of the options has been apportioned over the vesting period. The amortisation  amount disclosed in the above table represents the current year amortisation amount for the year ended 30 June  2003, calculated as the number of days in that financial year over the total number of days in that option vesting  period multiplied by the number of options granted at the Black-Scholes value of $0.86 for S.M. Heath and $0.23  for B.C.Y. Hui. (a) Options granted to these directors (set out under “Directors’ Interests” on page 7) were exercisable from 1 July  2002. No amortisation amount has been included in the calculation of the long-term emoluments amortisation  amount for the year ending 30 June 2003 for these directors.  (b) The number of options disclosed in the above table represents those options that have been issued to the  directors of Harvey Norman Holdings Limited that have not vested as at 30 June 2003.  (c) Options have been valued at grant date, using the Black-Scholes option pricing model which takes account of  factors such as the option exercise price, the current level and volatility of the underlying share price and the time  to maturity of the option. The value of the options has been apportioned over the vesting period. The amortisation  amount disclosed in the above table represents the current year amortisation amount for the year ending 30 June  2003, calculated as the number of days in that financial year over the total number of days in that option vesting  period multiplied by the number of options granted at the Black-Scholes value of $1.2665. The exercise price in  respect of each option is $4.10.  10  HARVEY NORMAN HOLDINGS LIMITED AND ITS CONTROLLED ENTITIES – ANNUAL REPORT 2003  ANNUAL EMOLUMENTS  LONG TERM EMOLUMENTS  BASE  SALARY  $  OTHER  $  SUPER  CONTRIBUTIONS  $  TERMINATION  BENEFITS  $  OPTIONS  GRANTED  (number)  AMORTISATION  AMOUNT  $  TOTAL  $  S.M. Heath 280,000  10,000  10,000  -  3,400,000(a)  678,710(b)  978,710  Pek Kem Hua @  Pek Kem Cheng  534,717  56,201  -  -  -  -  590,918  Pe Kim Beng @ Pek Kim Bing  639,179  -  -  -  -  -  639,179  B. C.Y. Hui  121,143  60,448  10,820  229,534  85,000(a)  6,574(b)  428,519  I. Dresner  145,833  -  82,000  88,546  -  -  316,379  The details of the nature and amount of each element of the emoluments of each director and each of the five  executive officers of the company receiving the highest emolument are set out below: 