Executive Directors’ Remuneration
It is the policy of the RemCo to provide an overall remuneration package that is competitive and which facilitates the recruitment and retention of high calibre management.
The annual and long-term incentive plans make up an important part of each executive Director’s remuneration and are structured so as to motivate senior managers to deliver high standards of performance, without encouraging excessive risk taking.
It is intended that the share-based elements of the package will not only drive performance over the long term but will also assist in aligning the interests of senior management with those of shareholders.
The structure of executive Directors’ remuneration was similar in 2007 to that in 2006 and no significant changes to the existing policy are currently envisaged for 2008.
Under the current arrangements, if target performance is achieved, basic salary will represent around one-half of total earnings. If maximum is achieved, which would involve a superior level of performance substantially in excess of business plan, basic salary will represent around one-third of total earnings.
Further details of the Executive Directors’ remuneration can be found in the 2007 Annual Report and Accounts p 18-24. These include basic salaries, annual incentive plan, executive share options and external appointments and more.
