Holiday Inn 2003 Annual Report Download - page 24

Total emoluments
Basic excluding pensions
salaries Performance 15.4.03 to 1.10.01 to
DIRECTORS’ EMOLUMENTS SINCE THE LISTING OF and fees payments Benefits 31.12.03 30.9.02
INTERCONTINENTAL HOTELS GROUP PLC ON 15 APRIL 2003 £000 £000 £000 £000 £000
Executive directors
Richard North 429 398 27 854 629
Richard Hartman 260 214 189 663 –
Stevan Porter 264 218 28 510 –
Sir Ian Prosser* 183 276 5 464 971
Richard Solomons 250 232 15 497 –
Non-executive directors
Ralph Kugler** 30 – – 30 –
Robert C Larson 30 – – 30 36
David Prosser#35––35 –
Sir Ian Prosser* 196 – 11 207 –
Sir Howard Stringer 30 – – 30 13
David Webster•++ 57––57 –
Total 1,764 1,338 275 3,377 1,649
* Became non-executive Chairman on 6 July 2003.
** All fees due to Ralph Kugler were paid to Unilever.
#Fees paid to David Prosser included a proportion of a £7,500 pa fee payable to the Chairman of the Remuneration Committee in recognition
of the additional responsibilities of this role.
•Fees paid to David Webster included a proportion of an £80,000 pa fee payable to the senior independent director in recognition of the additional
responsibilities of this role.
++ Became non-executive Chairman on 1 January 2004 for which a fixed fee of £275,000 pa is paid.
Note: Thomas Oliver retired from Six Continents PLC on 31 March 2003 and has not served as a director of IHG PLC. However, he has an ongoing
consultancy agreement in respect of which he received fees of £115,000 during the period. In addition, he had an ongoing healthcare benefit
of £7,000 during the period.
22 InterContinental Hotels Group 2003
REMUNERATION REPORT
3.6 CONTRACTS OF SERVICE
A) POLICY
The Remuneration Committee’s policy is for executive directors
to have rolling contracts with a notice period of 12 months.
Prior to Separation, each of the executive directors, Richard
Hartman, Richard North, Stevan Porter and Richard Solomons
entered into service agreements with a notice period of
12 months. All new appointments are intended to have
12 month notice periods.
No provisions for compensation for termination following
change of control, or for liquidated damages of any kind,
are included in the current directors’ contracts. In the event
of any early termination of an executive director’s contract
the policy is to seek to minimise any liability.
Sir Ian Prosser continued as executive Chairman under the terms
of his previous service agreement until his normal retirement age
of 60 years on 5 July 2003. After that date, Sir Ian entered into
a new service agreement as non-executive Chairman for a fixed
period which expired on 31 December 2003.
Non-executive directors, Ralph Kugler, Robert C Larson,
David Prosser, Sir Howard Stringer and David Webster signed
letters of appointment effective from the listing of IHG PLC.
David Webster became non-executive Chairman of the
Company on 1 January 2004 on new terms.
B) DIRECTORS’ CONTRACTS
Contract Unexpired Term/
Directors Effective Date Notice Period
Richard Hartman 15.4.03 12 months
Richard North 15.4.03 12 months
Stevan Porter 15.4.03 12 months
Richard Solomons 15.4.03 12 months
Sir Ian Prosser 6.7.03 Expired
3.7 POLICY REGARDING PENSIONS
UK-based executive directors and senior employees
participate on the same basis in the executive section of the
InterContinental Hotels UK Pension Plan and, if appropriate,
the InterContinental Executive Top-Up Scheme. Stevan Porter
and senior US-based executives participate in US retirement
benefits plans. Executives in other countries, who do not
participate in these plans, will participate in local plans,
or the Six Continents International Retirement Income Plan.
In accordance with latest legislation, the information provided
in the following pages of this Report has been audited by
Ernst & Young LLP.