Experian 2009 Annual Report Download - page 66

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64 Experian Annual Report 2009
Meeting obligations under
share-based incentives
Obligations under Experian’s employee
share plans may be met using either
shares purchased in the market or,
except for rolled-over awards under
certain GUS schemes, newly issued
shares. The approach during the
year has been to use a combination
of newly issued shares and shares
previously purchased by the employee
trusts. Following a recent review it
has been decided that for the time
being all awards will be satised by
the purchase of shares or from shares
previously purchased by the employee
trusts. The policy will remain under
regular review.
The above graphs show that, at 31
March 2009, a hypothetical £100
invested in GUS and subsequently,
Experian would have generated a
total return of £180 compared with a
return of £83 if invested in the FTSE
on 31 March 2001 and a total return of
£120 compared with a return of £105 if
invested on 31 March 2004.
With respect to Responsible
Investment Disclosure, the committee
is satised that environmental, social
and governance risks are not raised
by the incentive structure for senior
management and do not inadvertently
motivate irresponsible behaviour.
Experian share option plan
The Experian share option plan was
approved by GUS plc shareholders at
the EGM held on 29 August 2006. This
plan seeks to align shareholder and
participant interests through share
price growth and the employment of
a stretching performance condition.
For awards to be granted to executive
directors in the next nancial
year, options will vest subject to
the achievement of a stretching
performance condition, being growth in
earnings per share (‘EPS’). 25% of an
award will vest for EPS growth of 4%
per annum rising to 100% vesting for
EPS growth of 8% per annum.
In addition, vesting of these awards
will be subject to satisfactory
ROCE performance.
For each of the long-term incentive
plans, external consultants will be used
to calculate whether, and the extent
to which, the performance conditions
have been met.
Experian Sharesave
All executive directors and employees
of Experian and any participating
subsidiaries in which sharesave or a
local equivalent is operated are eligible
to participate if they are employed
by Experian at a qualifying date.
Sharesave provides an opportunity for
employees to save a regular monthly
amount, over either three or ve years
which, at the end of the savings period,
may be used to purchase Experian
shares under option for up to 20%
below market value at the date of grant.
Performance graph
The committee has chosen to illustrate
the ‘TSR’ for GUS plc until demerger
and Experian plc against the FTSE 100
Index for the period since listing on
11 October 2006 to 31 March 2009. The
FTSE 100 Index is the most appropriate
index against which TSR should
be measured, as it is a widely used
and understood index of leading UK
companies.
Performance as GUS (to 6 October 2006)
Performance as Experian (from 6 October 2006)
Value of £100 invested in GUS/Experian and the FTSE 100
on 31 March 2001
FTSE 100 Index
March
04
March
05
March
06
March
07
March
08
March
09
£150
£100
£50
£0
£200
Value of £100 invested in GUS/Experian and the FTSE 100
on 31 March 2004
FTSE 100 Index
Performance as GUS (to 6 October 2006)
Performance as Experian (from 6 October 2006)
March
01
March
02
March
03
March
04
March
05
March
06
March
07
March
08
March
09
£200
£150
£100
£50
£0
£250
Governance
Report on directors’ remuneration continued