Experian 2012 Annual Report Download - page 83

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Governance Financial statementsBusiness reviewBusiness overview
The directors’ pension entitlements in respect of benefits from registered and non-registered defined benefit schemes and arrangements are
detailed in the table below.
Executive directors’ service contracts
Don Robert has a service agreement with Experian Services Corporation (‘ESC’) dated 7 August 2006. This provides that, if his employment
is terminated by ESC without cause, he is entitled to the following severance payments: continued payment of monthly salary for 12 months
from the termination date; 12 months’ participation in welfare benefit plans in which he participated during his employment; and an annual
bonus based on 100% achievement of objectives payable in equal monthly instalments for 12 months. The same amounts are payable by
ESC if Don Robert terminates the contract: (i) following material breach by ESC; or (ii) for Good Reason following a change of control of ESC.
Good Reason means, during the six month period following a change of control, a material and substantial adverse reduction or change in
Don Robert’s position. These terms are in line with US practice.
Don Robert’s service agreement also provides for the following payments to be made if the agreement terminates in the event of his
death (in addition to payments due but unpaid before death): a pro rata annual bonus for the bonus year to the termination date based
on ESC’s performance in that bonus year; and a lump sum equal to 12 months’ base salary to be paid no later than 90 days after the date
of death. If the employment is terminated due to Don Robert’s disability, he is entitled to the bonus as described immediately above
(in addition to payments due but unpaid before the termination). Any deferred compensation obligations will be governed in accordance
with the relevant plan rules. This is consistent with US employment practice.
Paul Brooks was employed under a service agreement dated 2 April 2007. Following his death, his emoluments were paid to the end
of January 2012. These emoluments are set out in the relevant tables contained within this report.
Chris Callero has a service agreement, dated 11 June 2009, with ESC which is terminable by 12 months’ notice either from ESC or from
Chris Callero.
Brian Cassin has a service contract, dated 29 February 2012, with Experian Limited which is terminable by 12 months’ notice from Experian
Limited and by 6 months’ notice from Brian Cassin.
Other than as described above, the service contract of each of the executive directors does not provide for any benefits on the termination
of employment. Experian’s policy on service contracts for new executive directors is to follow the UK Corporate Governance Code guidelines
and best practice.
Closing accrued
pension
per annum
(1)
US$’000s
Opening accrued
pension
per annum
(2)
US$’000s
Closing transfer
value
(3)
US$’000s
Opening transfer
value
(4)
US$’000s
Change in
transfer
value (less
director’s
contributions)
(5)
US$’000s
Additional
pension earned
(net of inflation)
per annum
(6)
US$’000s
Transfer value
of the increase
(less director’s
contributions)
(7)
US$’000s
Don Robert 543 484 11,749 8,465 3,284 34 742
£’000s £’000s £’000s £’000s £’000s £’000s £’000s
Paul Brooks 201 186 4,720 4,065 647 15 340
Four former directors of Experian Finance plc (formerly GUS plc), received unfunded pensions from the Company during the year. Three of
the former directors are paid under the SURBS. The total unfunded pensions paid to the former directors was £473,153 (2011: £508,547).
Notes:
Columns (1) and (2) represent the deferred pension to which the director would have been entitled had he left the Group at 31 March 2012 (or date of death in the
case of Paul Brooks) and 31 March 2011 respectively. Following Paul's death, benefits were paid to his widow in line with the rules of the Experian Pension Scheme
and the Experian Limited SURBS arrangement.
Column (3) is the transfer value of the pension in column (1) calculated as at 31 March 2012 (or date of death in the case of Paul) based on factors supplied by the
actuary of the relevant Group pension scheme in accordance with version 8.1 of the UK actuarial guidance note GN11.
Column (4) is the equivalent transfer value, but calculated as at 31 March 2011 on the assumption that the director left service at that date.
Column (5) is the change in transfer value of accrued pension during the year net of contributions by the director. The change in transfer value for Paul includes the
change due to the implementation of a new transfer value basis by the Trustee of the Experian Pension Scheme with effect from 1 November 2011.
Column (6) is the increase in pension built up during the year, recognising (i) the accrual rate for the additional service based on the pensionable salary in force at
the end of the period, and (ii) where appropriate the effect of pay changes in “real” (inflation adjusted) terms on the pension already earned at the start of the year.
Column (7) represents the transfer value of the pension in column (6).
The disclosures in columns (1) to (5) are equivalent to those required by the large and medium-sized Companies and Groups (Accounts and Reports) Regulations
2008 and those in columns (6) and (7) are those required by the UK Financial Services Authority Listing Rules.