Carphone Warehouse 2014 Annual Report Download - page 52

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Remuneration report continued
REMUNERATION DETAILS CONTINUED
SCENARIO CHARTS
The charts below provide estimates of the potential future remuneration for each executive director based on the total opportunity available
for the 2014–15 financial year including anannualised share of the Carphone Warehouse Share Plan.
ANDREW HARRISON, CHIEF EXECUTIVE OFFICER
£’000
Minimum Stretch1
Super
stretch1Maximum2
35%
41%
100%
47%
42%
18% 35%
£2,195
£1,240
£511
£2,885
18%23%41%
• Long-term incentive1,3
• Annual variable
• Fixed
NIGEL LANGSTAFF, CHIEF FINANCIAL OFFICER
£’000
Minimum Stretch1
Super
stretch1Maximum2
33%
40%
100%
51%
46%
20% 33%
£1,727
£939
£376
£2,288
16%21%40%
• Long-term incentive3
• Annual variable
• Fixed
1. Fixed remuneration comprises basic salary, committed taxable benefits and pension contributions.
2. Annual variable remuneration represents the annual bonus entitlement. No bonus is assumed at the minimum performance level. Stretch performance
assumes 50% of the maximum pay-out, super stretch assumes 75% of the maximum pay-out, while maximum assumes 100% of the maximum pay-out.
3. Long-term incentives relate to the Carphone Warehouse Share Plan, in which the executive directors participate. This incentive scheme vests in 2017 and 2018,
and the total value of scheme has been annualised over a period of five years.
No reward is assumed at the minimum level of performance. Stretch performance reflects the generation of shareholder returns of £0.5bn over the term
ofthescheme, while super stretch performance reflects the generation of £1bn of incremental returns on the same basis.
Maximum performance is fixed at the point at which the dilution cap of 4% associated with the Carphone Warehouse Share Plan is expected to apply, being £1.3bn
of incremental shareholder returns over the term of the scheme.
CONSIDERATION OF EMPLOYMENT CONDITIONS ELSEWHERE
IN THE GROUP
With the exception of the salary increases reflecting the Company’s
increased profile following the CPW Europe Acquisition, no increase to
the remuneration of the executive directors is proposed. In arriving at
this conclusion the Remuneration Committee was mindful that on
average, the pay increase for other UK employees is approximately
2%. Whilst employees were not formally consulted on executive
remuneration a number of them are shareholders and as such are able
to exercise their influence; we also monitor our employee discussion
boards and employee forums to ensure employee feedback in general
is considered in all our strategy execution.
CONSIDERATION OF SHAREHOLDER VIEWS
INDEVELOPINGPOLICY
In 2013 we undertook an extensive consultation exercise with our
shareholders to seek their views on the Carphone Warehouse Share
Plan. As a result of this feedback a number of changes were made to the
scheme design, including the introduction of a cap, greater transparency
regarding the opening value calculation and the introduction
ofshareholding guidelines.
SINGLE TOTAL FIGURE OF REMUNERATION
Basic salary/ Taxable Pension Annual Total
fees benefits contributions bonuses 2014
2014 £000 £000 £000 £000 £000
Sir Charles Dunstone 240 — — — 240
Andrew Harrison* 317 815 339 679
Roger Taylor 293 5 7 — 305
Nigel Langstaff 325 10 16 375 726
John Allwood 74 — — — 74
John Gildersleeve 81 — — — 81
Baroness Morgan of Huyton 60 — — — 60
Gerry Murphy — — — — —
* Andrew Harrison joined the board on 1 August 2013. His remuneration presented above is for the period for which he was a director.
Carphone Warehouse Group plc
Annual Report 2014
50
CORPORATE GOVERNANCE