Carphone Warehouse 2014 Annual Report Download - page 48

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Remuneration report continued
ELEMENT
PURPOSE AND
LINK TO STRATEGY OPERATION OPPORTUNITY
ASSESSMENT OF
PERFORMANCE
Mid-term
incentive plan
continued
Since the
implementation of
this arrangement is
contingent on the
completion of the
Merger, the Committee
has not yet finalised
the measures and
targets. Further details
on the performance
conditions will be
disclosed to
shareholders in next
year’s annual report
if the arrangement is
implemented following
the completion of
theMerger.
Long-term
incentive schemes
(long-term
variable)
Long-term
incentive schemes
are transparent
and demonstrably
aligned with the
interests of
shareholders over
the long term.
The schemes
reward execution
ofour strategy only
when they have
delivered superior
value to
shareholders.
The executive directors participate in the
Carphone Warehouse Share Plan approved
by shareholders inJune 2013.
New executive directors appointed
fromtimeto time may participate in
theCarphone Warehouse Share Plan
(oracomparable plan implemented with
shareholder approval) or the Carphone
Warehouse Share Scheme approved by
shareholders in 2010 and amended in June
2013. Maximum returns for executive
directors (excluding any buy-out
arrangements provided for in the
Recruitment Policy) will be consistent with
existing executive directors and the limits
set out in this Policy Table.
Further details of the Carphone Warehouse
Share Plan and Carphone Warehouse
Share Scheme are provided on page 47.
The total pool for
distribution to
participants is
subject to a cap of
4% of the total issued
share capital of the
Company on the
measurement date.
The Chief Executive
Officer allocation is
7% ofthe total pool and
Chief Financial Officer
allocation is 6%.
Grants under the
Carphone Warehouse
Share Scheme are
subject to overall
dilution limits and
amaximum grant
per participant in
any financial year
of a market value of
300% of basic salary.
Performance will be
determined by the
Committee against
the stretching
targets agreed by
shareholders in
June2013.
Save As You Earn Encourages
employees to make
a long-term
investment in the
Company’s shares
and therefore be
aligned to the
long-term success
of the Company.
Executive directors are eligible to
participate in all employee share plans.
An HMRC approved Save As You Earn
scheme was introduced in the UK in
December 2013 and a comparable scheme
will be launched in Ireland in due course.
Participants can
save up to £250 per
month for either three
or five years. This
limit may be increased
for future schemes in
accordance with the
statutory limits in place
from time to time.
Atthe end of the
savings period
participants can
purchase shares in
the Company based
on a discounted share
price determined at
the commencement
of the scheme.
The performance of
the scheme will be
determined by the
share price of the
Company at the end
of the relevant
savings period.
REMUNERATION POLICY REPORT CONTINUED
REMUNERATION POLICY TABLE continued
Carphone Warehouse Group plc
Annual Report 2014
46
CORPORATE GOVERNANCE