ANNUAL REPORT 2011 REMUNERATION REPORT - continued Executive remuneration structure The executive remuneration framework has two components, namely: The remuneration of the non-executive directors for the  year ending 30 June 2011 is detailed below. Table 1 - Annual board and committee fees payable to  non-executive directors •  fixed salary package including base salary and  benefits such as superannuation; and •  variable remuneration. The Group intends to conduct a review of potential  incentive plans during the year ended 30 June 2012 to  ensure that the variable component of remuneration  is appropriately structured taking into account “best  practice” in the resources industry and is directly  aligned to the achievement of the Group’s financial and  strategic objectives. The fixed component of an executive’s remuneration  comprises base salary and superannuation contributions.  The size of the executive’s salary package is based on the  scope of each executive’s role, the level of knowledge,  skill and experience required to satisfactorily perform  the role and the individual executive’s performance in  the role. The proportion of an executive’s total fixed  salary package that is paid as superannuation is at  the executive’s discretion, subject to compliance with  relevant superannuation guarantee legislation. Fixed salary package The Committee annually reviews each executive’s performance and benchmarks the executive’s salary  package against appropriate market comparisons using  information and advice provided by external consultants.  There are no guarantees of salary increases included in  any executive’s employment contract. The objective of providing a variable “at risk” component within executive directors’ and senior executives’ total remuneration packages is to link a  proportion of their remuneration directly to the objective  of creating shareholder wealth. As such, this element of  remuneration is made available to those executives who  have a direct impact on the Group’s performance and  who are able to influence the generation of shareholder  wealth. In consultation with external remuneration consultants,  the Group has developed an executive remuneration  framework that is market competitive and is consistent  with the reward strategy of the organisation. 21 •  provide competitive rewards that attract, retain  and motivate high calibre executives; •  align executive rewards with the achievement of  strategic objectives and performance of the Group  and the creation of value for shareholders; •  ensure total remuneration is competitive and reasonable; and •  comply with applicable legal requirements and  appropriate standards of governance. Perseus aims to reward its executive directors and  other senior executives with a level of remuneration  commensurate with their position and responsibilities  within the Group. In doing so, it aims to: Policy on executive directors’ and other senior  executives’ remuneration  No retirement benefits are paid to non-executive directors other than the statutory superannuation contributions of 9% required under Australian superannuation guarantee legislation.  Variable remuneration  Directors’ Retirement Benefits 1 Inclusive of statutory superannuation where applicable Position  Annual fees 1 from 1 July 2010  to present  $ Base Fees  Chair 163,500 Other non-executive directors  92,650 Additional Fees  Audit committee – Chair  - Audit committee – member  - Remuneration committee – Chair  - Remuneration committee – member  -