The policy is generally to pay salaries around the mid-market level for the individual’s performance within the context of the relevant market for the job. However, when setting salaries, judgement is also exercised by the Committee, having regard to individual experience and responsibility.
Salary is the only pensionable remuneration and it is normally reviewed annually with effect from January.
Accordingly, particularly when a new appointment is made, salary levels may be set at a lower level than the mid-market position, with a view to increasing towards this position over the two to three years following promotion. No increases (other than for promotions) were awarded to executive directors and other members of the senior executive population in January 2009 as executives and the Committee felt it appropriate to set a clear example in the current economic conditions.
Accordingly, the base salaries for the executive directors for the financial year beginning on 1 January 2009 are as follows:
(Download XLS:)  |
|
Name |
Salary |
% increase since 2008 |
|---|---|---|
|
Tim Breedon |
£770,000 |
0% |
|
Andrew Palmer |
£460,000 |
0% |
|
John Pollock |
£370,000 |
0% |
Kate Avery stood down from the Board in January 2009. She will remain employed on a period of garden leave until 31 August 2009. On termination she will receive a severance payment in line with her basic contractual and statutory entitlement. This payment will total £270,000. She will forfeit all awards outstanding under the Company’s share plans as at the date of her termination.
On 28 January 2009 Mark Gregory joined the Board as Executive Director (Savings) with immediate effect. His starting salary was set at £310,000, a below median positioning relative to the market which is consistent with the Company’s policy for new appointments. It is intended that, as he develops into the role, his salary will be progressed towards a market median positioning.