Sunstone Metals Annual Report 22

Remuneration report (Audited) (continued) Alignment to program participants’ interests: – rewards capability and experience – reflects competitive reward for contribution to growth in shareholder wealth – provides a clear structure for earning rewards – provides recognition for contribution. The overall level of executive reward takes into account the performance of the Group. The Group is involved in mineral exploration and does not generate any revenue from product sales and therefore growth in earnings is not considered relevant. Shareholder wealth is dependent upon exploration success and has fluctuated accordingly. 2022 2021 2020 2019 2018 2017 Impact on shareholder wealth Gain/(Loss) per share (cents) (0.1) 0.1 0.3 (1.9) (0.2) (0.4) Share price (cents) 4.5 1.5 0.7 4.1 3.8 1.5 The Company’s performance rights plan links employees’ remuneration to the share price of the Company as the performance conditions include ASX trading price hurdles. Executive pay The executive pay and reward framework has two components: – Fixed remuneration (base salary, superannuation & other non-monetary benefits) – Variable remuneration (long-term incentives through participation in the performance rights plan and short‑term incentives through cash bonuses) The combination of these components comprises the executive’s total remuneration. Fixed Remuneration – Base salary Base salary is structured as a total employment cost package which may be delivered as a combination of cash and prescribed non-financial benefits. Executives are offered a competitive base pay that comprises the fixed component of pay and rewards. Base pay for senior executives is reviewed annually to assess if the executive’s pay is competitive with the market. There are no guaranteed base pay increases included in any senior executives’ contracts. – Non-monetary benefits Executives may receive benefits including car allowances, car parking and reasonable entertainment expenses. – Post-employment benefits Executives are permitted to nominate a superannuation fund of their choice to receive contributions. – Long-term benefits Long-term benefits include long service leave entitlements. Directors’ Report continued 20 Sunstone Metals Limited Annual Report 2022 SUNSTONE METALS LIMITED ANNUAL REPORT 2022

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