Experian 2014 Annual Report Download - page 87

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Illustrations of the application of remuneration policy
Set out below is the total remuneration for Brian Cassin that could result from applying our remuneration policy under three
different performance scenarios.
Brian Cassin
(£’000)
The illustration above was produced for Brian Cassin as he is the only executive director who served during the year ended
31 March 2014 who will also be an executive director from 16 July 2014 when the remuneration policy takes effect.
Notes:
The scenarios in the graph above are defined as follows:
Fixed pay is base salary for the year ending 31 March 2015 plus the value of pension and benefits, as disclosed in the single total figure of remuneration for 2014.
Target performance is the level of performance required to deliver 50% of the maximum annual bonus, and 25% and 50% of the maximum PSP and CIP awards respectively, with the CIP matching
award being based on 100% deferral of a target annual bonus.
Maximum performance would result in the maximum annual bonus payment and full vesting of the CIP and PSP awards, with the CIP matching award being based on 100% deferral of a maximum annual bonus.
All scenarios ignore share price growth and dividend equivalents.
Approach to recruitment remuneration
Experian is a global organisation, competing for market share and executive talent in nearly 40 countries. We are a leader in the
information industry, where demand for talented leaders often outstrips supply. Therefore, from time to time it is necessary to
appoint high-calibre executives to the Board, either by recruiting externally or by promoting from within the Group. The Committee
does not believe in over-paying. In developing a remuneration package for a newly appointed executive director, the Committee
will look to set a base salary which takes into account factors such as the individual’s skills and experience, the role the individual
will be taking up, internal relativities, the marketplace in which the executive will operate and the individual’s current remuneration
package. The incentive arrangements and benefits offered, including any relocation arrangements, would typically be in line with the
remuneration policy set out in this report. The Committee would also take into account the likely vesting and resulting value of any
equity or other incentives that the new hire would be giving up.
In the case of an internal promotion to the Board, any existing variable pay element or benefit may be allowed to continue on
the same terms.
The Committee has set the normal maximum level of variable remuneration on recruitment at 800% of base salary. This is in line
with the normal levels currently available under our variable remuneration structure, and covers the maximum annual bonus, the
maximum face value of a matching award under the CIP and the normal maximum face value of an award under the PSP.
As detailed in the policy table in the Directors’ remuneration policy report, the rules of the incentive plans provide for award limits
as set out in the following table:
Award level Normal maximum Exceptional maximum
Annual bonus 200% 200%
CIP 400% 400%
PSP 200% 400%
SOP –400%
When recruiting an executive director, the Committee would always seek to apply the normal maximum limits but may, in exceptional
circumstances, make awards up to the higher limits if it felt it was necessary to do so in order to secure the appointment of a
particular individual.
Fixed Annual bonus Long-term incentives
Fixed pay £958
£3,083
£7,758
Target
08,0006,000 7,0005,0004,0003,0002,0001,000
Maximum
100%
30% 28% 42%
12% 22% 66%
Governance • Report on directors’ remuneration