Holiday Inn 2003 Annual Report Download - page 27

5 LONG TERM REWARD
Performance Restricted Share Plan This plan was introduced on Separation and in 2003 there were three cycles in operation.
The awards made in respect of the performance period ended 31 December 2003, which are to be paid in cash, were:
Pre-tax awards
Awards held at granted during Total pre-tax awards
15.4.03 period to 31.12.03 held at 31.12.03
Directors £000 £000 £000
Richard Hartman – 214 214
Richard North – 398 398
Stevan Porter – 218 218
Sir Ian Prosser* – 276 276
Richard Solomons – 232 232
This ‘transitional’ award was based on performance during the period to 31 December 2003 where the performance measure
related to the achievement of actual and annualised overhead reduction targets. The award is to be paid in cash, equivalent
to 66% of salary.
* Sir Ian Prosser’s award was pro-rated to reflect his actual service during the performance period following his retirement from the role of executive
Chairman on 5 July 2003.
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The 401(k) is a tax qualified plan providing benefits on a
defined contribution basis, with the member and the relevant
company both contributing. The DCP is a non-tax qualified
plan, providing benefits on a defined contribution basis, with
the member and the relevant company both contributing.
The following additional information relates to directors’
pensions under the various plans.
A) DEPENDANTS’ PENSIONS On the death of a director
before his normal retirement age, a widow’s pension equal to
one-third of his own pension is payable; a child’s pension of
one-sixth of his pension is payable for each of a maximum of
two eligible children. On the death of a director after payment
of his pension commences, a widow’s pension of two-thirds
of the director’s full pension entitlement is payable; in addition,
a child’s pension of one-sixth of his full pension entitlement
is payable for each of a maximum of two eligible children.
B) EARLY RETIREMENT RIGHTS After leaving the service of
the relevant company, the member has the right to draw his
accrued pension at any time after his 50th birthday, subject
to a discount for early payment.
C) PENSION INCREASES All pensions (in excess of Guaranteed
Minimum Pensions) are subject to contractual annual increases
in line with the annual rise in RPI, subject to a maximum of
5% per annum. In addition, it is current policy to pay additional
increases based on two-thirds of any rise in RPI above 5%
per annum.
D) OTHER DISCRETIONARY BENEFITS Other than the
discretionary pension increases mentioned in C above, there
are no discretionary practices which are taken into account
in calculating transfer values on leaving service.
Notes to Directors’ Pension Benefits table
note 1: Contributions paid in the period by the directors under the terms of the plans. Richard Hartman’s contributions were paid after 31 December 2003.
note 2: The absolute increase in accrued pension during the period.
note 3: The increase in accrued pension during the period excluding any increase for inflation, on the basis that increases to accrued pensions are
applied at 1 October.
note 4: Accrued pension is that which would be paid annually on retirement at 60, based on service to the end of the period.
note 5: The transfer value in respect of Sir Ian Prosser as at 1 October 2002 has been restated to allow for his right to draw the accrued pension
without deduction, which was already funded and charged in previous accounts, and to allow for a 3% increase to his annual salary for pension
purposes on 1 October 2001 and 2002. The transfer value shown in respect of Sir Ian as at 31 December 2003 is the figure at his date of
retirement of 5 July 2003.
The figures shown in the above tables relate to the final salary plans only. For defined contribution plans, the contributions made by and in respect of
Richard Hartman, Thomas Oliver and Stevan Porter are:
1 October 2002 to 14 April 2003 15 April 2003 to 31 December 2003
Company contribution to Company contribution to
SCIRIP DCP 401(k) SCIRIP DCP 401(k)
£££ £££
Richard Hartman 27,700 22,800
Thomas Oliver 54,100 4,900 13,100 –
Stevan Porter 21,900 7,700 18,900 300
The aggregate of these contributions was £171,400.