BT 2015 Annual Report Download - page 113

111
Overview
The Strategic Report
Purpose and strategy Delivering our strategy 0ur lines of business Group performance Governance
Financial statements Additional information
otal hareholder eturn  of 1. placed  in the upper
uartile of its coparator roup over the three-ear perforance
period of our 01 ncentive hare lan  lon-ter incentive plan.
uulative three-ear noralised free cash ow perforance was
.bn which was around the iddle of the  rane of bn to bn.
he revenue rowth easure was not et. he 01  vested at
. based on this perforance. ore inforation on the  vestin
is on pae 11.
ploees also participated in s financial success. ur perforance in
the ear reects their epertise hard wor and coitent. n uust
01 over 000 people in our 009 savins-related share option
plan saveshare were able to bu shares at 1p representin an averae
ain of around 1000 each. e believe s share plans enable as
an of our people as possible to share in s success.
Looking ahead
s reported above shareholders supported our approach to eecutive
pa last ear and we intend to continue with that approach in the
earahead.
hareholders approved the acuisition of  at a eneral eetin on
0 pril 01 and we are awaitin erer approval fro the
opetition and arets uthorit .  epects the acuisition to
coplete durin 011 followin which we will reassess the olic
to ensure that our incentive structure continues to be appropriate for
the new oranisation. f we conclude that the reuneration structure
should chane we will present a new reuneration polic for
shareholder approval at the 01 .
o copl with the latest chanes to the UK orporate overnance
ode we will introduce a new clawbac provision for annual bonus
paents eecutive directors a earn durin 011.  awards
ade in 011 and in future ears will also be subect to clawbac
in certain circustances durin the two-ear post-vestin period.
e provide ore detail on the clawbac provisions on pae 119.
alus provisions have been in place since 009 in respect of unvested
eecutive share plan awards as set out on pae 19.
e reviewed the perforance of our eecutive directors and consistent
with our polic to position base pa below the edian aainst our
coparator roup we areed a salar increase of 00 per annu
for the hief ecutive an increase of .. e also areed a salar
increase for the roup inance irector of 1000 an increase of
.. oth increases tae eect on 1 une 01.
hese salar increases are in line with those for substantiall all our UK
eploees who received an averae of .. a awards for this roup
of eploees are areed throuh trade union consultation and collective
barainin arraneents.
his ear the coittee has aintained the lin between pa and
perforance and will continue to do so.
Tony Ball
Chairman of the Remuneration Committee
 a 01
Report on Directors’ Remuneration
Review of the year
he coittee has continued with its approach to eecutive pa and we
set out below our e activities.
t the 01  shareholders endorsed our approach to reuneration
and its related disclosure with ore than 99 of votes cast in favour of
the nnual euneration eport 011.
hareholders also approved the euneration olic stateent
theolic with 9 votes cast in support. e have operated within
the approved olic durin 011 which we have reproduced
on paes 1 to 19 to ae it easier to read this ears nnual
euneration eport. e are not asin shareholders to vote on
theolic at the 01 .
s we outlined last ear we brouht the balance between short-ter
and lon-ter reuneration for the roup inance irector into line
with that for the hief ecutive. his re-alinent achieved our ai
of reducin the annual bonus opportunit particularl for on-taret
perforance and placin reater ephasis on the lon-ter eleent
of perforance.
 e focus has been to reward the deliver of sustained iproveents
in custoer service within our businesses. o this end we introduced a
new custoer advocac easure into the custoer service eleent of
the annual bonus.  conducts reular custoer perception surves to
assess how well the copan perfors when deliverin its products and
services. he surve process is tailored to atch the custoer profile
served b each individual line of business. ne-third of the custoer
service easure within the annual bonus is based on the new custoer
perception eleent and the reainin two-thirds on our eistin iht
irst ie  etric. ou can find ore inforation on  and the
custoer perception easure on pae 11.
e have reviewed the ipact of issuin new shares in ebruar to
partl finance the proposed acuisition of . hile the issue of these
new shares will aect soe parts of eecutive reuneration we did not
consider that an adustents for the current ear were necessar.
Outcomes for the year
e assessed the eecutive directors perforance aainst both
lon-ter and short-ter tarets.
or annual bonus purposes both eecutive directors perfored well
aainst the set financial tarets and ade proress towards their
custoer service tarets. he also delivered on personal contribution
and purposeful copan easures.
s a result the annual bonus for the hief ecutive was  of
aiu and for the roup inance irector was  of aiu.
n eepin with past practice part of the annual bonus is deferred for
three ears and paid in shares. ore detail on perforance aainst the
annual bonus easures can be found on pae 11.