BT 2014 Annual Report Download - page 96

93
Governance
Governance
Additional disclosures relating to the single Ƭgure table
Salaries
Gavin Patterson’s salary was reviewed in September 2013 when he took
the role of Chief Executive. Gavin’s salary was increased to £925,000 per
annum, the same salary that Ian Livingston received for that role. This
was in the context of an overall reduction in on-target remuneration,
relative to Ian. The total reward positions Gavin in the lower half of the
pay range of CEOs of companies of a similar sie and complexity.
During the year, Tony Chanmugam’s salary was increased to £600,000
per annum. The committee’s remuneration principle is to position
executive salaries at below median against our comparator group.
During the transition of the Chief Executive, Tony provided exceptional
support and stability to the company, and we considered that Tonys
performance merited recognition. As such, given that Tony’s salary had
fallen signicantly behind the market, the committee considered that
the increase was appropriate, noting that the new salary was still below
the mid-market position.
Benets
Benets provided to executive directors and the Chairman include
company car, fuel or driver, personal telecommunication facilities and
home security, medical and dental cover for the directors and immediate
family, special life cover, professional subscriptions, personal tax advice
and nancial counselling.
Annual bonus
Executive directors were eligible for an annual bonus based on corporate
nancial performance targets customer service Environmental, Social
and Governance (ESG) measures and individual targets. The customer
service element of the annual bonus is paid only if a minimum adjusted
EPS threshold is achieved. The annual bonus is paid in two elements,
acash element, and a deferred element awarded in shares.
Concurrent with Gavin Patterson’s appointment to the role of Chief
Executive, we changed the structure of the annual bonus element of the
Chief Executive’s remuneration, reducing the bonus opportunity at both
target and maximum performance for short-term performance.
The Chief Executive’s bonus opportunity reduced from 250% of salary
at target to 120% of salary, and from 400% of salary at maximum to
240% of salary. Gavin Patterson’s bonus in 2013/14 was pro-rated to
reect his time in the Chief Executive role and his previous role as CEO, BT
Retail. The bonus weightings for the two roles are described on page94.
The long-term incentive element was increased at the same time as set
out on page 91.
The bonus opportunity for the Group Finance Director (GFD) of 175%
of salary at target and 262.5% of salary at maximum was unchanged
inthe year.
Basic salary
and fees
(2013/14)
£000
Basic salary
and fees
(2012/13)
£000
Benets
excluding
pensiona
(2013/14)
£000
Benets
excluding
pensiona
(2012/13)
£000
Annual
Bonusb
(2013/14)
£000
Annual
Bonus
(2012/13)
£000
ISPc
(2013/14)
£000
ISPd
(2012/13)
£000
Pension
allowance net
of pension
contributionse
(2013/14)
£000
Pension
allowance net
of pension
contributionse
(2012/13)
£000
Total
2013/14
£000
Total
2012/13
£000
Sir Michael Rake 650 650 30 21 ––––––680 671
G Patterson 772 570 43 29 1,302 956 1,945 2,575 188 171 4,250 4,301
T Chanmugam 573 535 32 25 1,202 954 1,826 2,446 172 161 3,805 4,121
T Ball 82 79 ––––––––82 79
P Hodkinson 154 156 ––––––––154 156
K Richardsonf79 75 18 14 ––––––97 89
N Rose 112 105 ––––––––112 105
J Whitbread 84 82 ––––––––84 82
W Eastg11 0––––––––11 –
Sub-total 2,517 2,252 123 89 2,504 1,910 3,771 5,021 360 332 9,275 9,604
Former directors
I Livingstonh769i 925 13 21 578 2,392 3,047 5,794 135 270 4,542 9,402
P Hewittj160 160 ––––––––160 160
Total 3,446 3,337 136 110 3,082 4,302 6,818 10,815 495 602 13,977 19,166
Annual Remuneration Report
This part of the Report is a summary of
keyelements of our directors’ remuneration
in 2013/14.
Single Ƭgure remuneration
The following sets out the full review of directors’ emoluments,
includingbonus and deferred bonus, and long-term incentive plans and
pension arrangements.
Directors ’ emoluments (audited)
Directors ’ emoluments for the nancial years 2013/14 and 2012/13
are set out in the table below. This information has been audited.
a BeneƬts include some or all of the following: company car or monthly cash allowance in lieu of
a car or part of such allowance not used for a car), fuel or driver, personal telecommunications
facilities and home security, medical and dental cover for the directors and immediate family,
special life cover, professional subscriptions, personal tax advice and Ƭnancial counselling.
b Annual bonus shown includes both the cash and deferred share element. The deferred element
of bonus includes the value of deferred shares to be granted in June 2014. Further{details of the
deferred element are set out below.
c 9alue shown represents the estimated value of ISP award, granted in June 2011 that are expected
to vest in May 2014. The estimate is based on a three-month average share price from 1{February
2014 to 30 April 2014 of £3.8751. Further details are provided on page 94.
d 9esting of ISP 2010 granted in June 2010 and vested in May 2013 at a share price of £3.055.
e Pension allowance paid in cash for the Ƭnancial year s see Total pension entitlement on page{95.
f Includes an additional fee for regular travel to Board and Board committee meetings.
g Warren East was appointed as a director on 1 February 2014.
h Ian /ivingston retired as a director on 10 September 2013.
i In accordance with his contract, Ian /ivingston received a payment of £306,831 representing
three months salary and beneƬts, which is included in this amount. Further details of
remuneration payments to Ian /ivingston are set out on page 96.
j Patricia +ewitt retired as a director on 23 March 2014.