Statement of implementation of remuneration policy in 2015

Salary

The table below sets out any increases to base salaries that will be effective 1 March 2015.

Name

Annual base salary as at
31 December 2014

Annual base salary effective
1 March 2015

% increase

Nigel Wilson

820,000

860,000

4.9%

John Pollock

560,000

560,000

0%

Mark Gregory

560,000

575,000

2.7%

Mark Zinkula

560,000

575,000

2.7%

Both Mark Gregory and Mark Zinkula will receive a salary increase of circa 2.7%. As outlined to shareholders during the consultation last year, Nigel Wilson was appointed at a base salary level which was below the market rate, with the intention to increase his salary to a more appropriate level to reflect his experience and performance in the role over time. In line with this, the Committee made its first change to Nigel’s salary last year given his strong performance in the role. Following a review of Nigel’s performance in the role for 2014, his third year of CEO tenure, the Committee considered it appropriate to continue with the salary progression for Nigel, who receives an increase of 4.9% for 2015.

Benefits for 2015

Benefits for 2015 to be in line with policy, as outlined in the Remuneration principles section.

Annual variable pay potential (AVP) 2015

In line with our policy, for 2015 the target and maximum AVP opportunities for our executive directors will be:

 

Target opportunity (% of salary)

Maximum opportunity (% of salary)

Notes

(a)

For 2015 only, given that John Pollock will remain in position until the date of the AGM, the Committee considered it appropriate to set a maximum AVP opportunity at his usual ‘target’ level of 75% of base salary and pro-rata for service. John’s usual maximum AVP opportunity is 150% of base salary.

Nigel Wilson

75%

150%

John Pollock (a)

75%

Mark Gregory

75%

150%

Mark Zinkula

105%

175%

Performance will be based on a combination of group and/or Divisional financial performance targets as well as strategic (including customer and employee measures) and personal measures. The majority of the targets will be financial. Actual targets have not been disclosed due to commercial sensitivity.

Performance share plan (PSP) 2015

For 2015, each executive director will be granted an award over nil-cost options with a face value of 250% of base salary (except for John Pollock who will not receive a PSP award in his year of cessation).

Given the level of stretch within the financial and TSR performance conditions used for the 2014 award, the Committee considered it appropriate to use the same performance conditions for the 2015 award.

See ‘Performance conditions for PSP awards granted in 2014’ for further details.