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MGX RESOURCES LIMITED Remuneration Information 2005
65331_rns_2005-01-24_5f3b0dc1-66c4-43cc-b901-8cb2323d8550.pdf
Remuneration Information
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Mount Gibson Iron Limited ABN 87 008 670 817
First Floor, 7 Havelock Street West Perth 6005, Western Australia
PO Box 55, West Perth WA 6872
Telephone: 61-8-9485 2355 Facsimile: 61-8-9485 2305 E-mail: [email protected]
VIA: WWW.ASX.ONLINE.COM
25 January 2005
No. Pages $=$ $\overline{2}$
The Manager Company Announcements Australian Stock Exchange Limited Level 10, 20 Bond Street SYDNEY NSW 2000
SUBJECT: DETAILS OF MANAGING DIRECTORS REMUNERATION PACKAGE
On 24 January 2005, Mount Gibson Iron Limited (ASX code: MGX) advised that the service contract of its Managing Director, Mr Brian Johnson, had been extended to 31 December 2007.
In accordance with the ASX's Principles of Good Corporate Governance and Best Practice Recommendations, it is advised that the remuneration package for Mr Johnson will comprise:
- Fixed term contract for three years from 1 January 2005 to 31 December 2007;
- Total base remuneration of \$438,000 per annum; and
- Non-cash benefits to the value of \$62,000 per annum which comprises use of a motor vehicle, accommodation and airfares to his residence in New South Wales.
There are no termination benefits at the completion of the contract term. However, if Mount Gibson Iron Limited wishes to terminate the contract, the Company is obliged to pay out the remaining term of the contract to a maximum of two years. If Mr Johnson wishes to terminate the contract, he must provide three months notice.
Subject to Shareholder approval, Mr Johnson will be provided with 10 million Mount Gibson Iron Limited share options with the following conversion dates and exercise prices;
| No Options | Vesting Date | Expiry Date | Exercise Price |
|---|---|---|---|
| 5.0 million | 31 December 2005 | 31 December 2007 | 50 cents |
| 5.0 million | 31 December 2006 | 31 December 2008 | 55 cents |
Vesting will only occur on the above dates if Mr Johnson is still actively engaged in the management or direction of any of the Mount Gibson Iron Limited Group companies, or immediately in the event there is a change of control or takeover offer for Mount Gibson Iron Limited.
Yours sincerely MOUNT GIBSON IRON LIMITED
John Arbuckle Company Secretary
Enquiries: Mr Bill Willis Chairman Telephone: 61 8 9485 2355 Email: [email protected]