Holiday Inn 2003 Annual Report Download - page 26

24 InterContinental Hotels Group 2003
REMUNERATION REPORT
4 DIRECTORS’ PENSIONS
The following information relates to the pension arrangements
provided for Richard Hartman (from 2 September 2003),
Richard North, Sir Ian Prosser, Richard Solomons and Tim
Clarke under the Six Continents Executive Pension Plan
(‘the SC Plan’) up to 31 March 2003, and the executive section
of the InterContinental Hotels UK Pension Plan (‘the IC Plan’)
from 1 April 2003. In the cases of Richard North, Richard
Solomons and Tim Clarke, they were also members of the
unfunded Six Continents Executive Top-Up Scheme (‘SCETUS’)
up to 14 April 2003, and Richard Hartman, Richard North
and Richard Solomons were members of the unfunded
InterContinental Executive Top-Up Scheme (‘ICETUS’) from
15 April 2003 (2 September 2003 in the case of Richard
Hartman). Richard Hartman was a member of the Six
Continents International Retirement Income Plan (‘SCIRIP’) until
1 September 2003 at which point his UK pension arrangements
replaced his international retirement arrangements.
The SC Plan and executive section of the IC Plan are similar
in that they are funded, Inland Revenue approved, final salary,
occupational pension schemes. The main features applicable
to the executive directors are: a normal pension age of 60;
pension accrual of 1/30th of final pensionable salary for each
year of pensionable service; life assurance cover of four times
pensionable salary; pensions payable in the event of ill health;
and spouses’ and dependants’ pensions on death.
All plan benefits are subject to Inland Revenue limits. Where
such limitation is due to the earnings ‘cap’, SCETUS and/or
ICETUS are used to increase pension and death benefits to
the level that would otherwise have applied. The SCIRIP is a
Jersey-based funded international defined contribution plan.
Thomas Oliver (up to April 2003) and Stevan Porter have
retirement benefits provided via the 401(k) Retirement Plan
for employees of Six Continents Hotels Inc. (‘401(k)’) and the
Six Continents Hotels Inc. Deferred Compensation Plan (‘DCP’).
15 April 2003 to 31 December 2003 Increases in
transfer value Accrued
Transfer value of over the Increase Increase pension at
Directors’ accrued pension period, less in accrued in accrued 31 Dec
DIRECTORS’ Age at contributions 15 April 2003 31 Dec 2003 directors’ pension pension 2003
PENSION 31 Dec (note 1) (note 5) contributions (note 2) (note 3) (note 4)
BENEFITS 2003 ££££ £ pa £ pa £ pa
Richard Hartman 57 3,700 – 652,200 648,500 38,400 38,400 38,400
Richard North 53 9,900 1,930,700 2,423,800 483,200 32,500 28,100 180,000
Sir Ian Prosser 60 7,200 11,153,800 11,352,500 191,500 7,500 7,500 573,100
Richard Solomons 42 9,900 418,500 569,400 141,000 18,000 16,300 75,500
1 October 2002 to 14 April 2003 Increases in
transfer value Accrued
Transfer value of over the Increase pension at
Directors’ accrued pension period, less in accrued 14 April
Age at contributions 1 Oct 2002 14 April 2003 directors’ pension 2003
14 April (note 1) (note 5) contributions (note 2) (note 4)
2003 ££££ £ pa £ pa
Tim Clarke 46 7,300 1,261,000 1,903,500 635,200 15,000 208,200
Richard North 53 7,300 1,408,400 1,903,700 515,000 12,800 147,500
Sir Ian Prosser 59 21,600 10,727,100 11,153,800 405,100 17,800 565,600
Richard Solomons 41 7,300 288,700 418,500 122,500 6,600 57,500
SDIP SDIP
shares Market shares Market Market Value
SIX CONTINENTS awarded price vested price price based
SPECIAL SDIP during the per during the per per SDIP on share
DEFERRED shares period share at period share at share at shares price at
INCENTIVE held at Vesting 1.10.02 to award Vesting 1.10.02 to Award award vesting held at Vesting 14.4.03***
PLAN (SDIP) 1.10.02 date 14.4.03 date** date 14.4.03 date date** date 14.4.03 date £
Directors+
Tim Clarke 44,433 18.12.02 23,790 534p 18.12.03 44,433 18.12.01 691.1p 502p 23,790 18.12.03 140,837
2,195 592p 31.5.04 2,195 31.5.04 12,994
Richard North 72,348 18.12.02 24,901 534p 18.12.03 72,348 18.12.01 691.1p 502p 24,901 18.12.03 147,414
2,381 592p 31.5.04 2,381 31.5.04 14,096
Thomas Oliver* 74,104 16.4.03 20,806 534p 16.4.03 94,910 16.4.03 561,867
+Neither Tim Clarke nor Thomas Oliver, both former directors of Six Continents PLC, have served as directors of IHG PLC.
* The vesting date for all awards applicable to Thomas Oliver was extended from 10.3.03 to 16.4.03.
** The share prices shown are based on a five day average immediately preceding the award date.
*** The Six Continents PLC share price on 14.4.03 was 592p per share.