Carphone Warehouse 2016 Annual Report Download - page 78
Download and view the complete annual report
Please find page 78 of the 2016 Carphone Warehouse annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68 -
69 -
70 -
71 -
72 -
73 -
74 -
75 -
76 -
77 -
78 -
79 -
80 -
81 -
82 -
83 -
84 -
85 -
86 -
87 -
88 -
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
 |
 |
Dixons Carphone plc Annual Report and Accounts 2015/16
Corporate Governance
Annual Remuneration Report
76
Long term incentive plans (LTIP)
The Share Plan awards made during 2014/15 vest in July 2017 (60%) and July 2018 (40%).
Details of the awards made and the loans granted to the directors to enable them to subscribe for shares under the Share Plan
are detailed later in this report.
No LTIPs have vested during the year for the directors whilst serving on the Board.
Annual bonus for 2015/16
The maximum bonus opportunity for all executive directors is 125% of base salary based on performance in the 12-month
period to the end of the financial year.
The Committee determined at the beginning of the year that the disclosure of performance targets were commercially sensitive
and therefore these were not disclosed. This was because targets were set within the context of a longer term business plan and
this disclosure could give information to competitors to the detriment of business performance. The Committee has however
disclosed in the table below the targets on a retrospective basis and the actual performance against these.
The maximum annual bonus of 125% of base salary is payable at the maximum level of performance, 25% of base salary on
achievement of threshold performance and 75% of base salary on achievement of target performance.
Measure
As a percentage of
maximum bonus
opportunity Threshold Target Maximum Actual Payout
Pro forma Headline EBIT 60% £450 million £475 million £500 million £468 million 29%
Pro forma average net
(debt) / funds – variance vs budget 10% £(50) million Budget £50 million £54 million 10%
Return on Capital Employed 10% 20.1% 20.6% 21.1% 21.0% 9%
Customer net promoter score 10% Worse Target Better Better 10%
Employee engagement score 10% Worse Target Better Better 10%
It should be noted that customer net promoter and employee engagement score targets were set in the context of a high base
point. The improvement in actual performance was therefore considered an excellent result. The actual scores for these
measures are still considered to be commercially sensitive and therefore cannot be disclosed in full.
Overall bonus payments will be at target levels and will be paid in cash at 68.4% of base salary. The Committee is comfortable
that the result is an appropriate reflection of overall performance during the year under review. The bonus amounts to be paid to
the executive directors in respect of 2015/16 are set out in the single figure of directors’ remuneration table on page 74.
00_DC 2016 Annual Report.pdf 76 11/07/2016 18:34