Experian 2013 Annual Report Download - page 81
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Please find page 81 of the 2013 Experian 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.Fixed remuneration
Base salary and benefits
Before making a final decision on individual salary awards, the Committee assesses each director’s individual performance
and experience as well as average pay increases awarded to other employees in the Group. To assess the appropriate salary
for a role, benchmark data, sourced from external remuneration consultants, is provided to the Committee. Executive directors’
salaries are benchmarked against those of executive directors from the companies in the FTSE 100 Index along with other
global comparators, reflecting the markets from which Experian recruits talent. These include, but are not limited to, UK and
US companies of a similar size, companies of a similar size in the UK and US financial services sector and companies with
significant operations in the same markets as Experian.
The Committee reviewed salaries in early 2013 and, taking into account the factors described above, approved increases as
detailed in the following table. These increases are in line with those awarded to the wider employee population.
In addition to base salary, executive directors receive certain benefits-in-kind including a car or car allowance, private health
cover and life assurance. These are set at market competitive levels for each role. In line with typical US practice, Don Robert
and Chris Callero also participate in a deferred compensation plan.
Pensions
Pension provision varies across the Group based on geographical location and the time of joining Experian. Subject to these
variations, the principles of pension provision apply to all employees.
In the UK, a defined contribution plan is available for all employees, with an employer contribution rate (in normal
circumstances) of up to 20% for the most senior executives. Retirement age is 65 but benefits can be taken from age 55
onwards. Brian Cassin participates in the UK defined contribution plan.
The UK defined benefit arrangements are closed to new entrants, subject only to exceptions approved by the Committee on a
case by case basis. There are no directors who are members of the UK defined benefit plan.
In the US, Experian provides a Personal Investment Plan (401k) which all US employees, including directors, are eligible to join.
This is a defined contribution arrangement to which participants are able to contribute up to 50% of salary, up to a maximum
salary and participant contribution limit established by the IRS, each calendar year. Chris Callero participates in this plan.
A supplementary unfunded defined benefit arrangement is provided in the US for Don Robert. This is a legacy arrangement
from when he joined the Company’s previous parent, GUS plc, and was set up to provide a defined benefit arrangement similar
to those of the UK executives. He is also entitled to participate in the US defined contribution arrangement (401k) but does not
currently do so.
Variable remuneration
Annual bonus
Annual bonuses are awarded for achieving profit growth targets. The Committee believes this is appropriate as it is reflective
of one of Experian’s key performance indicators (EBIT). The maximum bonus opportunity for executive directors is 200% of
base salary. However, this level of annual bonus is only payable if Experian’s financial performance surpasses stretching profit
growth targets, designed to deliver exceptional results to shareholders. The calibration of these targets is based on benchmarks
that reflect stretching internal and external expectations. The benchmarks considered include: broker earnings estimates,
earnings estimates for competitors, straight-line profit growth consistent with median/upper quartile shareholder returns, latest
projections for the current year, budget and strategic plan.
Annual bonus in respect of the year ended 31 March 2013
The Committee set targets for the annual bonus in respect of the year ended 31 March 2013 which required stretching levels of
performance (with reference to relevant internal and external benchmarks) in order for maximum bonus to be earned.
Salary to
31 March 2013
Salary from
1 April 2013
Percentage
increase
Don Robert US$1,550,000 US$1,595,000 2.9%
Chris Callero US$990,000 US$1,015,000 2.5%
Brian Cassin £450,000 £462,500 2.8%
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Business overview Business review Governance Financial statements
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