'Single figure' of remuneration.

In order to help shareholders’ understanding and in recognition of the draft BIS proposals, in 2011 we provided a ‘single figure’ of remuneration for each of our executive directors. Since our last report was published, BIS has clarified the methodology for how the single figure should be calculated and therefore we have revised our disclosure for 2012 in line with their guidance. We have also adjusted the single figures published for 2011. The notes explain the changes.

Single figure £000s

(XLS:) Executive Directors’ ‘single figure’ for 2012 and 2011

Executive Director

Salary

Benefits
– note 1

Pension
– note 2

Bonus
– note 3

LTIPs
– note 4

Total remuneration

 

2012 notes

a

Tim Breedon stepped down from the Board on 30 June 2012. His remuneration reflects the period 1 January 2012 to 30 June 2012.

b

Mark Zinkula joined the Board on 18 September 2012. His remuneration, including bonus, reflects the period 18 September 2012 to 31 December 2012.

2012

 

 

 

 

 

 

Tim Breedona

408

42

186

435

2,209

3,280

Nigel Wilson

653

46

99

779

1,617

3,194

John Pollock

424

42

213

520

1,062

2,261

Mark Gregory

420

43

92

472

889

1,916

Mark Zinkulab

126

150

20

205

n/a

501

2011

 

 

 

 

 

 

Tim Breedon

808

50

418

804

245

2,325

Nigel Wilson

550

28

87

456

0

1,121

John Pollock

412

33

251

472

118

1,286

Mark Gregory

400

33

102

308

55

898

Mark Zinkula

n/a

n/a

n/a

n/a

n/a

n/a

Benefits £000s

(XLS:) Executive Directors’ benefits for 2012 and 2011

Executive Director

Car and PMI (plus relocation assistance for Mark Zinkula)

Dividends
– note i

Gain on SAYE
– note ii

Matching shares
– note iii

Total benefits shown in the table above

2012

 

 

 

 

 

Tim Breedon

10

31

0

1

42

Nigel Wilson

20

25

0

1

46

John Pollock

20

21

0

1

42

Mark Gregory

20

22

0

1

43

Mark Zinkula

141

9

0

0

150

2011

 

 

 

 

 

Tim Breedon

20

29

0

1

50

Nigel Wilson

20

7

0

1

28

John Pollock

20

12

0

1

33

Mark Gregory

20

12

0

1

33

Mark Zinkula

n/a

n/a

n/a

n/a

n/a

Components of Benefits and how calculated

Footnote

Explanation

Dividends – note i

Value of all dividends received in 2012 or 2011 in respect of outstanding SBP awards, unvested matching shares under the Employee Share Plan (ESP) and Group Performance Shares, under the ESP.

Gain on SAYE – note ii

Any gain on SAYE vesting in the year – nothing vested in 2011 or 2012 for the directors.

Matching shares – note iii

Value of matching shares at date of purchase and Group Performance Shares awarded in the year valued at the date of award (does not include the amounts that vested).

The regular table of remuneration for 2012 required under the existing legislation can be found under the section Other Information.

Components of the Single Figure and how the calculations vary from 2011

Footnote

Explanation

Benefits – note 1

In 2011, benefits included car allowance and private medical insurance (PMI). Benefits now include the elements shown in the table below the single figure. For Mark Zinkula, benefits also include the proportion of schooling, housing and flights relating to the period 18 September to 31 December 2012 resulting from his relocation package to the UK.

Pension – note 2

The value of any registered pension using the HMRC formula for assessing the annual and lifetime allowance limits (i.e. 20 times the post inflation benefit for defined benefit provisions (the figure for 2011 has been adjusted to be consistent with this approach) or for the defined contribution pensions the employer defined contributions as set out in the Pension entitlements and other benefits section. It does not necessarily represent the economic value of the pension accrual and is not money immediately available to the person.

For the defined contribution arrangements (applicable to Mark Gregory), any balance over and above the Annual Allowance limit is paid in cash. During 2012, Nigel Wilson took fixed protection and takes a cash allowance of 15% of base salary. Following enhanced protection in 2006 and changes to the pension plans in 2008, John Pollock receives a cash allowance of 22% of base salary in lieu of pension contributions. Tim Breedon also received a cash allowance of 22% of base salary until 31 December 2012. Mark Zinkula receives a cash contribution of 15% of base salary in lieu of joining the UK pension plan. He participates in the Legal & General America 401K plan and cash savings plan. All cash allowances are subject to normal payroll deductions of income tax and National Insurance.

 

Executive Director

Cash in lieu

Defined benefit

Defined contribution

Total pension

 

2012

 

 

 

 

 

Tim Breedon

90

96

0

186

 

Nigel Wilson

97

0

2

99

 

John Pollock

93

120

0

213

 

Mark Gregory

37

26

29

92

 

Mark Zinkula1

19

0

1

20

 

2011

 

 

 

 

 

Tim Breedon

178

240

0

418

 

Nigel Wilson

34

0

53

87

 

John Pollock

91

160

0

251

 

Mark Gregory

19

60

23

102

 

Mark Zinkula

n/a

n/a

n/a

n/a

 

1. Mark Zinkula contributes to a 401K plan, which is included in the defined contribution figure in the table above. His figures represent the period 18 September to 31 December 2012.

Bonus – note 3

The total bonus awarded in relation to performance in the year including the portion that is deferred. For bonus awarded in relation to 2011, 37.5% of this figure was deferred into shares for three years. In the 2011 Report & Accounts the element that was awarded for performance in the year but deferred was taken out of the single figure on the basis that it was not immediately available to the recipient. Instead, the single figure for 2011 included deferred bonus that vested in 2011. The figure has now been adjusted to show the total bonus payable for 2011 performance.

For bonus awarded in relation to performance in 2012, the figure shown includes the 37.5% of the award, which is deferred for three years. In line with current policy, the bonus for Tim Breedon is paid in cash due to his retirement.

LTIPs – note 4

Value of PSP awards that vested (as of the date of vest) during the year. The vesting of awards is dependent on the TSR performance conditions as set out in the Current policy section. Note that Nigel Wilson, John Pollock and Mark Gregory chose not to exercise their award upon vesting. They have the ability to exercise up to 5 May 2014. Note: the performance period ran from 6 May 2009 to 6 May 2012.