Carphone Warehouse 2014 Annual Report Download - page 46

Remuneration report continued
REMUNERATION POLICY REPORT CONTINUED
REMUNERATION POLICY TABLE
The individual elements of the remuneration packages offered to executive directors are summarised in the following table:
ELEMENT
PURPOSE AND
LINK TO STRATEGY OPERATION OPPORTUNITY
ASSESSMENT OF
PERFORMANCE
Base salary (fixed) To aid the
recruitment,
retention and
motivation of
high-performing
people.
To reflect their
experience and
importance to
thebusiness.
Reviewed annually with effect from 1 July.
The review reflects a range of factors
including merit levels, internal relativity and
cost. Typically increases for executive
directors willbe in line with increases
across the Group. Increases beyond those
granted across the Group may be awarded in
certaincircumstances such as changes
inresponsibilities, progression in the role
and significant increases in the size,
complexity or value of the Group.
Our overall policy, having due regard to the
factors noted, is normally to target salaries
up to the median level.
Salaries for new appointments as executive
directors will be set in accordance with the
Recruitment Policy set out on page 47 of the
Remuneration Policy Report.
No changes to the
base salaries of the
executive directors
are proposed for
the coming year.
Salary levels for
current incumbents
are as follows:
– Chief Executive
Officer £475,000
– Chief Financial
Officer £350,000
Salaries are
reviewed annually
by the Committee
at the appropriate
meeting having
due regard tothe
factors noted in
the Remuneration
Policy.
Benefits (fixed) In line with the
Company’s
strategyto keep
remuneration
weighted to variable
pay thatincentivises
outperformance,
amodest range of
benefits is provided.
Directors are entitled to a combination of
benefits which, with the exception of the car
allowance, are provided to all UK-based
employees. They include:
+car allowance;
+subsidised private medical cover;
+long-term incapacity cover;
+life assurance;
+holiday and sick pay; and
+eligibility to participate in employee
SaveAsYou Earn schemes.
Should an executive director be recruited
from or in a non-UK location, benefits may
be determined by those typically provided
inthe normal country of residence.
The cost to the
Group of providing
such benefits will
vary from year to
year in accordance
with the cost of
providing such
benefits.
Not applicable.
Pension (fixed) A modest pension
isprovided which
isconsistent with
that provided to
managers across
theGroup and in line
with our strategy to
keep remuneration
weighted to variable
pay that incentivises
outperformance.
The Company makes a modest contribution
to defined contribution pension schemes
orself-invested pension plans.
Executive directors may chose to receive a
cash allowance in lieu of pension contribution.
Executive directors
typically receive a
pension contribution
or allowance of
5%of salary;
however a greater
contribution of up
to 20% of salary
may be made
where necessary to
recruit or retain an
executive director.
Not applicable.
Carphone Warehouse Group plc
Annual Report 2014
44
CORPORATE GOVERNANCE