Holiday Inn 2005 Annual Report Download - page 21

During 2005, conditional rights over 5,173,633 IHG PLC shares were
awarded to employees under the Performance Restricted Share Plan
and 1,277,838 IHG PLC shares were released to employees under
the Plan.
A number of employees participated in the Short Term Deferred
Incentive Plan during the year and conditional rights over 624,508
IHG PLC shares were awarded to participants. A number of participants
are eligible to receive an award in IHG PLC shares on 8 March 2006.
No options were granted under the Sharesave Plan during the
year. Neither the Hotels Group Share Incentive Plan nor the
US Employee Stock Purchase Plan were operated during the year.
SHARE CAPITAL
During the year, 2,448,632 new IHG PLC shares were issued
under employee share plans and the ordinary share capital at
31 December 2005 consisted of 432,936,345 IHG PLC shares
of 10p each.
SUBSTANTIAL SHAREHOLDINGS
As at 1 March 2006, the Company has been notified by
shareholders of the following substantial interests (3% or more)
in its ordinary share capital:
Lloyds TSB Group Plc 4.51%
Legal & General Group Plc 3.17%
DIRECTORS
Details of Directors who served on the Board during the year and
their share interests are shown on page 21 and on pages 30 to 33
respectively. During the year, IHG has maintained cover for its
Directors and officers and those of its subsidiary companies under
a directors’ and officers’ liability insurance policy, as permitted by
Section 309(5) of the Companies Act 1985.
EMPLOYEES
IHG employed an average of 21,986 people worldwide in the year
ended 31 December 2005.
The Group is committed to providing equality of opportunity to
all employees without discrimination and continues to be
supportive of the employment of disabled persons. Where existing
employees become disabled, it is the Group’s policy to provide
continuing employment wherever practicable in the same or
an alternative position.
Great emphasis is placed on employee communication, particularly
on matters relating to the Group’s business and its performance.
Communication channels include global management conferences,
team meetings, informal briefings, in-house publications and
intranets. Regular feedback is obtained through employee focus
groups and employee opinion surveys, the results of which are
utilised in developing management policies and best practices.
A European Forum brings together senior managers and employee
representatives from EU countries to discuss pan-European issues.
Further information regarding the Group’s employment policies and
its approach towards developing its people can be found on pages
22 and 23 of the Annual Review and Summary Financial Statement.
CORPORATE SOCIAL RESPONSIBILITY
IHG believes that Corporate Social Responsibility makes sound
business sense, and seeks to embed good practice throughout the
Group. The Board has adopted a specific Code of Ethics for senior
financial officers, consistent with the Group’s existing Guidelines
for Proper Business Conduct.
IHG continues to support community initiatives and charitable
causes. During the year, the Group donated £800,000 to these
causes. In addition to these cash contributions, employees are
encouraged to give their time and skills to a variety of causes
and IHG makes donations in kind, such as hotel accommodation.
Taking these contributions into account, total donations in 2005
are estimated at £936,000.
More details of the Group’s charitable, community, environmental
and socially responsible activities and policies are provided on pages
18 to 21 of the Annual Review and Summary Financial Statement.
IHG’s Corporate Social Responsibility activities are also published
on its website www.ihgplc.com
The Group made no political donations during the year and
proposes to maintain its policy of not making such payments.
POLICY ON PAYMENT OF SUPPLIERS
InterContinental Hotels Group PLC is a holding company and has
no trade creditors. Group companies aim to adhere to the payment
terms agreed with suppliers. Payments are contingent on the
supplier providing goods or services to the required standard, and
purchasing is sometimes coordinated between Group undertakings.
GOING CONCERN
The financial statements which appear on pages 34 to 75 have been
prepared on a going concern basis as, after making appropriate
enquiries, the Directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence
for the foreseeable future.
AUDITORS
The Directors have taken steps to make themselves aware of relevant
audit information. None of the Directors is aware of any relevant
audit information which has not been disclosed to the auditors.
Ernst & Young LLP have expressed their willingness to continue in
office as auditors of the Company and their reappointment will be
put to members at the Annual General Meeting.
ANNUAL GENERAL MEETING
The Notice convening the Annual General Meeting to be held at
11.00am on Thursday, 1 June 2006 is contained in a circular sent
to shareholders with this Report.
By order of the Board
Richard Winter
Company Secretary
1 March 2006
InterContinental Hotels Group 2005 19