Directors’ Report (continued)  Environmental Regulation  Performance  Significant Changes in the State of  Affairs Significant Events After Balance  Date  Emoluments of Board Members and  Senior Executives  Remuneration Policy Likely Developments and Future  Results  In the opinion of the directors, there were no  significant changes in the state of affairs of the  consolidated entity that occurred during the financial  year. The consolidated entity’s environmental obligations  are regulated under both State and Federal Law. All  environmental performance obligations are monitored by the Board. The consolidated entity has  a policy of at least complying, but in most cases  exceeding its environmental performance obligations. No environmental breaches have been  notified to the consolidated entity by any Government  agency during the year ended 30 June 2003.  There have been no material events subsequent to  balance date, apart from:  The Remuneration Committee of the Board of  Directors is responsible for reviewing compensation  arrangements for the directors, the Managing Director and the executive team and making  recommendations to the Board of Directors about  such matters. The Remuneration Committee assesses the appropriateness of the nature and  amount of remuneration received by such officers on  a periodic basis by reference to relevant employment  market conditions with the overall objective of  ensuring maximum stakeholder benefit from the  retention of a high quality board and executive team. Remuneration is generally determined by the Board  of Directors on a total cost of employment basis and  packages generally comprise salary, superannuation  and a fully maintained motor vehicle where appropriate. The present policy of the Board is that  options to acquire shares in the company will not be  granted to employees or executive directors without  specific shareholder approval. The Board has  determined that bonuses may be awarded to  employees, but only as a consequence of exceptional performance. The directors have excluded from this report any  further information on the likely developments in the  operations of the consolidated entity and the  expected results of those operations in future  financial years, as the directors believe that it would  be likely to result in unreasonable prejudice to one or  more entities in the consolidated entity.  (1) the grant of certain options by Pertama  Holdings Limited, Singapore to Martin Dunkerley (see Note 26 of the financial  statements),  (2)  the opening of two Harvey Norman stores in the  Republic of Ireland.  9  HARVEY NORMAN HOLDINGS LIMITED AND ITS CONTROLLED ENTITIES – ANNUAL REPORT 2003 