Iluka Resources has announced a series of cost-saving measures to remuneration policy and practices following poor financial results last year.
The mineral sands miner’s 2009 annual report released yesterday details how changes effecting Board, executive and general employee remuneration.
Actions of note included the director’s fixed remuneration being frozen, and a recruitment freeze that will continue into 2010 with the exception of critical roles.
Employees participating in the 2009 short term incentive plan did not receive an increase to their fixed remuneration for the 2010 annual salary review, the employee share plan was suspended for 2009, and the Iluka Retention Plan was also closed in August 2009.
In its shareholder report, also released yesterday, chairman Dr Bob Every said a reduction in demand for its products combined with a decline in zircon sales had meant 2009 was a challenging year.
“This flowed through to lower revenues and a disappointingly poor set of financial results, reflected in a reported loss after tax of $108.6 million,” he said.
“In light of the reported earnings profile of the company, Iluka’s senior management group will forgo any increase in salary in 2010 while the Board will also retain its fee structure at 2009 levels.
“There will be no payment to senior management for that part of the company’s short term incentive which relates to financial performance measures for the 2009 financial year. This constitutes 60 per cent of the value of any potential short term incentive.”