Remuneration report
The significant change in the economy has impacted not only on the performance of the Company, but also the decisions taken by the Remuneration Committee during the year. Based on the Company’s performance in 2008/09 and current market conditions, no salary increases or annual bonus payments were awarded to executive directors during the year. Looking ahead, we will continue to ensure ‘pay for performance’ is central in all our decisions. For maximum bonus to be earned in 2009/10, executive directors will have to achieve an additional ‘stretch’ target, which is above that for the rest of the Company, and is approximately 40% greater than the operating plan target. Furthermore, at least 90% of the operating plan target must be achieved before any bonus payment against individual objectives is made. This, together with the challenging Performance Share Plan targets, means that the senior remuneration strategy remains highly geared towards share incentive plans, continuing to align executive directors’ reward to that of shareholders.
Louise Patten Chairman of the Remuneration Committee
This Remuneration report has been prepared on behalf of the Board by the Remuneration Committee. The Committee adopts the principles of good governance as set out in the Combined Code and complies with the Listing Rules of the Financial Services Authority, the relevant schedules of the Companies Acts and the Directors’ Remuneration Report Regulations 2002. These regulations require the Company’s auditors to report on the ‘Audited Information’ in the report and to state that this section has been properly prepared in accordance with these regulations. For this reason, the report is divided into audited and unaudited information, and is subject to shareholder approval at the Annual General Meeting (AGM) on 8 July 2009.