The executive remuneration and reward framework has the following components: – Total Fixed Remuneration (TFR); – Short-Term Incentive (STI); and – Long-Term Incentive (LTI). When considering the remuneration package components, it was important that the right balance between “at risk” (STI and LTI) and fixed remuneration was achieved to balance the interests of Executives and Shareholders. Each of the components is outlined in the table below. Fixed Component “At Risk” Components Fixed Remuneration Short-Term Incentive Long-Term Incentive Purpose Competitive base remuneration to attract and retain high quality talent appropriate to the business scale, complexity and maturity Motivate and reward delivery of strong operational and financial performance against the annual plan. Motivate and reward outcomes that grow long‑term shareholder value. Link to Strategy Base remuneration aims to provide fair and competitive pay in recognition of dayto-day accountabilities and responsibilities in implementing business strategy. Rewards achievement of key strategic, financial and operational objectives on an annual basis consistent with longer‑term priorities and goals. Rewards successful delivery of longer‑term strategies and sustained shareholder value creation by aligning Executive outcomes to shareholder value. Form Cash Salary, superannuation and any salary-sacrificed items. Cash Payment Performance Rights are granted under the Company’s Long-Term Incentive Plan and are tied to share price performance over a multi-year period, ensuring that executives are only rewarded where there is a demonstrable creation of shareholder value. Vesting occurs progressively in tiers, with portions of the award vesting only as higher share price hurdles are achieved. This tiered approach encourages executives to deliver sustained growth in shareholder value over time and aligns their rewards with the Company’s successful transition into development and production. Consolidated Entity performance and link to remuneration Remuneration for certain executives granted options or performance rights is linked to the performance of the Consolidated Entity, as an improvement in the Company’s share price will correspondingly increase the benefits to the executive. This will align the interests of the executive and the shareholders. Refer to the section “Additional information” below for details of the earnings and share price movements for the last five years. 29 Melbana Energy Limited Annual Report 2025
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