Base salary.

Base salary.

ELEMENT

POLICY

Note: Details of base salary decisions for 2014 can be found in the annual report on remuneration.

PURPOSE AND LINK TO STRATEGY

To help recruit and retain executive directors of the calibre required to develop, lead and deliver the business strategy.

OPERATION

The Committee sets base salary taking into consideration:

  • The individual’s skills, experience and performance;
  • The scope of the role;
  • Pay and conditions elsewhere in the Group;
  • Overall business performance; and
  • External market benchmark data in other FTSE 100 companies and other relevant bespoke groupings of financial and non-financial institutions. For 2014, the key bespoke group of other financial institutions includes Admiral, Aviva, Old Mutual, Prudential, Resolution, RSA Insurance, Direct Line and Standard Life.

Base salaries are normally reviewed annually, with increases effective 1 March. However, the Committee may review them more frequently, for example where there is a material change to a role or its scope.

OPPORTUNITY

Whilst there is no maximum base salary, any increases for executive directors will normally be in line with the range of increases for other UK employees in the wider Group.

In specific circumstances, the Committee may award increases above this level such as:

  • where the Committee has set the base salary for a newly appointed executive director with a view to allow the individual to progress into the role over time; or
  • where, in the Committee’s opinion, there has been a significant increase in the size or scope of an executive director’s role or responsibilities; or
  • where there is a significant change in the regulatory environment.

PERFORMANCE CONDITIONS

Personal performance would be taken into consideration in determining any salary increase.

What do you think about this report?

Even though this feedback form is on every page, you only need to fill it out the once.