DIRECTORS’ LOANS
At 31 December 2009 there were no outstanding loans made to directors.
SERVICE CONTRACTS
The termination period for Tim Breedon and John Pollock is six months and on termination they would be entitled to an additional six months’ salary, pension and car allowance entitlement. These entitlements may be mitigated and/or spread over the period of notice.
Mark Gregory and Nigel Wilson have termination periods of 12 months. However, they have no entitlement to any additional contractual payment on termination of employment. Any payment in lieu of notice will consist solely of base salary and the cost of providing benefits for the outstanding notice period and will be subject to deductions for income tax and national insurance as appropriate. These entitlements may be mitigated and/or spread over the period of notice.
Copies of the executive directors’ service contracts are available for inspection at the Company’s registered office.
EXTERNAL APPOINTMENTS
The Company considers that certain external appointments can help to broaden the experience and capability of the executive directors. Any such appointments are subject to annual agreement by the Remuneration Committee and must not be with competing companies. Subject to the Committee’s agreement, any fees may be retained by the individual. Tim Breedon is an unpaid Board member of the [ABI]. While a director, Andrew Palmer received fees of £50,000 as a non-executive director of SEGRO plc and was also Chairman of their Audit Committee, Chairman of the ABI Financial Regulation and Taxation Committee and Chairman of the ABI Financial Reporting Committee. Nigel Wilson is a non-executive director of Halfords Group Plc and receives a fee of £66,000 p.a. Mark Gregory is an unpaid Director of Westdown Park Management Company Ltd.
The Directors’ Report on Remuneration was approved by the directors on 22 March 2010.
Sir David Walker
Chairman of the Remuneration Committee
INDEPENDENT VERIFICATION REVIEW
Hewitt New Bridge Street (HNBS) act as advisers to the Remuneration Committee. In addition, they were asked to verify that the 2009 remuneration practice for executive directors followed the Remuneration Policy put to the 2009 AGM. In conducting this work, HNBS reviewed the elements of executive director remuneration during 2009, as detailed in the policy statements of the Directors’ Report on Remuneration 2008 (DRR 2008). They confirmed that they were satisfied that the remuneration practice during 2009 had been in line with the stated policy set out in the DRR 2008.
