REMUNERATION REPORT (AUDITED) (CONTINUED) 5. Executive remuneration arrangements Structure Total fixed remuneration Annual Report 2013 27 Total fixed remuneration is reviewed annually, as part of a review that takes into account the individual’s performance, the overall performance  of the Company in the case of the executives, the relevant business unit’s performance in the case of business unit executives, and current  comparative remuneration data. Executive contracts of employment do not include any guaranteed base pay increases. Total fixed remuneration comprises cash and other  benefits and entitlements to provide a base level of remuneration which is both appropriate to the role and responsibilities, reflects current market  conditions, the individual’s seniority and internal relativities. The following table illustrates the structure of the Company’s executive remuneration arrangements in 2013: The Company encourages its executives to own the Company’s shares, to further align their interests with the interests of other shareholders.  The Board reviewed the incentive arrangements for executives and the Managing Director/CEO in the current period. There is also a tax exempt share plan that may be utilised at the discretion of the Board for general employee equity participation. An Executive  Option Plan, for which no further grants will be made, has a series of grants outstanding, the last of which expires on 1 January 2019. The Company currently grants Performance Rights, subject to shareholder approval as a Long Term Incentive to the Managing Director/Chief  Executive Officer. Deferred Equity Awards are provided to Senior Executives based on the level of STI earned each year. The DEA is granted as  Performance Rights and subject to one (50%) and two (50%) year service vesting conditions. The last offer under this plan was made on 27  April 2012. Remuneration is determined as part of an annual performance review process, having regard to market factors, relevant comparative data, a  performance evaluation process and independent remuneration advice, where necessary. In the three months to 31 March 2013, the executive remuneration framework consisted of the following components: - LTI for the Managing Director/CEO only. - STI including the Deferred Equity Award (DEA); and   Variable or ‘at risk’ remuneration comprising:  Fixed remuneration; and Remuneration Component Vehicle Purpose Link to performance Total fixed remuneration (TFR). Comprises base salary,  superannuation contributions and  any ‘packaged’ benefits including  FBT grossed-up on a Total  Employment Cost (TEC) basis. To reward executives market  competitive remuneration  with reference to role,  market and experience and  internal relativities. No link to Company performance  although it is reviewed annually  and consideration is given to the  performance of the Company  and business unit in the  remuneration review. Short term incentive  (STI) component. Paid in cash and Deferred Equity  (Performance rights). Rewards executives for their  contribution to achievement  of Company and business unit  outcomes, as well as individual  key performance indicators  (KPIs). STI is calculated based on 50%  Company performance where  Profit after Tax is the key financial  metric and 50% performance  linked to relevant performance  across internal measures of  Financial, Safety, Compliance, and  Operational drivers.  Long term incentive (LTI)  component. (CEO only) Performance rights. To reward the CEO if the  Company outperforms over  the vesting period to align the  CEO to shareholders and for  retention purposes. Both internal (EPS) and external  (TSR) measures are applied as  detailed below.