McPHERSON’S LIMITED
ANNUAL REPORT 2015
27
The following table summarises the performance of the Group over the last five years:
2015
2014
1
2013
2012
2011
Statutory profit / (loss) after tax for the year ($’000)
8,840
(67,039)
(33,319)
17,028
19,499
Profit after tax - excluding significant items
($’000)
11,962
14,252
13,057
18,665
26,160
Basic earnings per share (cents)
9.2
(72.4)
(43.2)
23.5
27.1
Basic earnings per share - excluding significant items (cents)
12.4
15.4
16.9
25.4
35.9
Dividends declared for the relevant financial year ($’000)
7,748
10,412
14,652
12,308
18,824
Dividend payout ratio as a percentage of statutory profit (%)
87.6
n/m
2
n/m
2
72.3
96.5
Dividend payout ratio as a percentage of profit excluding significant items (%)
64.8
73.1
112.2
65.9
72.0
(Decrease)/increase in share price (%)
(48.4)
(13.1)
(21.3)
(40.1)
20.3
Total KMP incentives as percentage of statutory profit / (loss) for the year (%)
4.9
(0.2)
(0.3)
2.4
4.9
Total KMP incentives as percentage of profit after tax excluding significant items (%)
3.6
0.8
0.7
2.2
3.7
1. See Note 1(A) of the financial statements for details regarding restatement as a result of an error
2. Ratio not considered meaningful due to statutory loss after tax recognised for the year.
Use of Remuneration Consultants
During the year the Group did not engage a remuneration consultant.
Nomination and Remuneration Committee
The Nomination and Remuneration Committee is comprised of independent non-executive Directors. The Committee has been established by the
Board of Directors to annually review, evaluate and make recommendations to the Board in relation to remuneration, including:
•Non-executive Director remuneration;
•Staff incentive plans proposed by the Managing Director, including bonus, share, option and performance rights plans, and the basis of their
application;
•Salary, benefits and total remuneration packages of the Managing Director and other senior executives; and
•Substantial changes to the principles of the Company’s superannuation arrangements.
Non-executive Directors
Fees and payments to non-executive Directors reflect the demands which are made on, and the responsibilities of, the Directors. Remuneration of
non-executive Directors is determined by the Board within an aggregate non-executive Directors’ fee pool limit which is periodically
recommended for approval by the shareholders. The aggregate was last considered by shareholders at the Annual General Meeting in 2010 when
a total remuneration of $550,000 inclusive of superannuation was approved. Including superannuation guarantee contributions made on their
behalf by the Company, non-executive Director remuneration for the year ended 30 June 2015 totalled $390,597 (2014: $378,137).
Non-executive Directors are not entitled to participate in any incentive scheme, nor are they eligible to receive share options or performance
rights.
The current base remuneration of individual non-executive Directors was last reviewed by the Nomination and Remuneration Committee as at 1
October 2014, at which time non-executive Director fees were increased by an average of 3%. The Chairman and other non-executive Directors
receive additional fees for their membership of the Board’s Audit Risk Management and Compliance Committee. The Chairman of the Nomination
and Remuneration Committee also receives an additional fee, however the members of that committee do not. Directors may direct the Company
to make superannuation guarantee contributions, or additional superannuation contributions allocated from their Directors’ or committee
membership fees, to any complying nominated superannuation fund.
At the Annual General Meeting of shareholders held on 7 November 1997, shareholders authorised the Company to enter into agreements with
Directors (called “Director’s Deeds”) which set out certain rights and obligations of the Director. The Directors’ Deeds do not reflect a fixed term of
appointment as Directors are subject to retirement and re-election by shareholders at least every three years.