The remuneration of the Group’s executive directors comprises base salary, participation in an annual bonus plan (paid partly in cash and partly deferred via the Share Bonus Plan (SBP)) and the Group’s PSP, which is a long term incentive plan, plus pension and ancillary benefits.
When setting remuneration for the executive directors, the Committee takes into account the market sector, function, job size, and individual and Company performance. In addition, the pay, employment conditions and base salary budgets set for other employees in the Company are taken into consideration. Data is obtained from a variety of independent sources.
We are currently reviewing the executive remuneration structure and this review will continue during 2013. We want to ensure that any change, should we indeed consider change appropriate, continues to:
- be simple, competitive and drive performance against the backdrop of our values;
- place emphasis on long term variable compensation;
- be recognisable for good corporate governance; and
- provide a linkage to our business strategy.
However, for 2013 our current policy remains unchanged and this is set out in the table on the next page.