Carphone Warehouse 2016 Annual Report Download - page 62

Dixons Carphone plc Annual Report and Accounts 2015/16
Corporate Governance
Remuneration Policy
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Pension (fixed pay)
•Purpose and link to strategy
A
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.
•Operation Defined contribution plans are offered to all employees. A defined benefit pension plan
continues in operation for Dixons’ longer-serving employees, which is now closed to
new participants and future accrual.
Executive directors may choose to receive a cash allowance in lieu of pension
contributions.
•Maximum opportunity Normal company pension contribution of up to 10% of base salary, which can be taken
in whole or in part as a cash allowance in lieu of pension. However a greater contribution
of up to 20% may be made where necessary to recruit or retain an executive director.
•Performance assessment
/
targets Not applicable.
A
nnual performance bonus (variable pay)
•Purpose and link to strategy
A
nnual performance bonuses are in place to incentivise the delivery of stretching,
near-term business targets based on our business strategy.
These bonuses provide a strong link between reward and performance and drive the
creation of further shareholder value.
The principles and approach are consistently applied across the Group ensuring
alignment to a common vision and strategy.
They are based on a balanced approach ensuring appropriate behaviours are adopted
and encouraging a longer-term focus.
•Operation Bonus payments are determined after the year end and subject to a minimum pro
f
it
threshold being achieved before payment is due.
For threshold level of performance a bonus of up to 25% of base salary is payable. A
sliding scale determines payment between the minimum and maximum bonus payable.
The annual bonus is typically paid in July / August in cash and is non-pensionable,
based on the audited performance over the previous financial year.
The annual bonus can instead be settled in shares or a mixture of cash and shares
which could be deferred, at the discretion of the Remuneration Committee.
Performance is reviewed by the Committee using its judgement where necessary to
assess the achievement of targets. The Committee retains the discretion to adjust
downwards bonus payments where achievement of targets would result in a payment
of a bonus at a level which would not be consistent with the interests of the Company
and its shareholders.
Recovery and withholding provisions apply for material misstatement, misconduct and
reputational damage enabling performance adjustments and / or recovery of sums
already paid. These provisions will apply for up to three years after payment.
•Maximum opportunity Maximum annual bonus potential fo
r
all executive directors is 125% of base salary.
No bonus is payable if the minimum profit threshold is not achieved.
•Performance assessment
/
targets
A
ll measures and targets are reviewed and set by the Committee at the beginning of
the financial year with a view to supporting the achievement of the Group strategy.
The bonus scheme has targets based on a balanced scorecard. The balanced
scorecard may include both financial and non-financial measures, such as employee,
customer and strategic measures. The weighting of measures will be determined by the
Committee each year. Financial measures (such as profit and cash) will represent the
majority of the bonus opportunity, with other measures representing the balance.
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