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Directors’ Report: Governance
Remuneration Report continued
36 The Carphone Warehouse Group PLC Annual Report 2008
For awards made in July 2004 the performance conditions are:
Up to 50% of the shares vested in July 2007, based on the Group’s Headline EPS growth and certain business unit targets, and TSR achievement
compared to the FTSE 250 Index over a three and a half year performance period. A Super Stretch award was achieved for both Headline EPS and TSR
targets for this period. The remaining 50% of shares will vest in July 2008, based on the Group and business unit performance against the same criteria
over a four year performance period. The Remuneration Committee has agreed awards at Super Stretch for both Headline EPS and TSR targets for this
performance period.
TSR and Headline EPS performance targets are summarised below:
TSR Headline EPS
For awards made in June 2005 the performance conditions are:
As for awards made in July 2004 except in that shares vest in July 2008 only.
For awards made in December 2006 the performance conditions are:
The vesting criteria for 50% of the award is Group TSR performance relative to the constituents of the FTSE 100 index (“relative performance”) measured
at June 2010. The vesting criteria for the remaining 50% of the award is Group TSR performance compared to the position at December 2006 (“absolute
performance”) measured at June 2010 and June 2011.
Subject to these performance criteria, shares vest in two equal tranches in June 2010 and June 2011.
Specific targets for the awards are as follows:
TSR absolute
TSR relative % of potential performance % of potential
performance award vesting increases by award vesting
Base Award Below Median 0% Less than 10% 0%
per annum
Median or above 100% 10% per annum 100%
Stretch Award Between Median 0% to 50% Between 10% 0% to 50%
and Upper Quartile (pro rata) and 15% per annum (pro rata)
Upper Quartile or above 50% 15% per annum 50%
Super Stretch Award Between Upper Quartile 0% to 50% Between 15% 0% to 50%
and Upper Decile (pro rata) and 20% per annum (pro rata)
Upper Decile or above 50% 20% per annum 50%
Outperform FTSE 250 index
consistently by at least 5%
over the performance period
25% if 2005 EPS is at least 20% above 2004 and does
not fall in 2006 and 2007
25% if 2006 EPS is at least 43% above 2004 and does
not fall in 2007
50% if 2007 EPS is at least 73% above 2004 and does
not fall in 2008
Outperform FTSE 250 index
consistently by at least 20%
over the performance period
25% if 2005 EPS is at least 29% above 2004 and does
not fall in 2006 and 2007
25% if 2006 EPS is at least 53% above 2004 and does
not fall in 2007
50% if 2007 EPS is at least 82% above 2004 and does
not fall in 2008
Outperform FTSE 250 index
consistently by at least 35%
over the performance period
25% if 2005 EPS is at least 38% above 2004 and does
not fall in 2006 and 2007
25% if 2006 EPS is at least 62% above 2004 and does
not fall in 2007
50% if 2007 EPS is at least 90% above 2004 and does
not fall in 2008
Base Award
Super Stretch Award
Stretch Award