Holiday Inn 2005 Annual Report Download - page 32

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5 LONG-TERM REWARD
PERFORMANCE RESTRICTED SHARE PLAN (PRSP)
In 2005, there were three cycles in operation and one cycle which vested.
The awards made in respect of the Performance Restricted Share Plan cycles ending on 31 December 2004, 31 December 2005,
31 December 2006 and 31 December 2007 and the maximum pre-tax number of ordinary shares due if performance targets are
achieved in full are set out in the table below. In respect of the cycle ending on 31 December 2005, the Company finished in fifth place
in the TSR group and achieved ROCE growth of 46%. Accordingly, 42.8% of the award will vest on 3 March 2006.
Maximum Maximum Expected
PRSP PRSP value value
shares shares based based
Maximum awarded vested Maximum on share on share
PRSP during Market during Market Actual/ PRSP price of price of
shares the year price per the year price per Value at planned shares 839.5p at 839.5p at
held at 1.1.05 to Award share at 1.1.05 to share at vesting vesting held at 31.12.05 31.12.05
Directors 1.1.05 31.12.05 date award 31.12.05 vesting £ date 31.12.05 £ £
Andrew Cosslett 68,21621.4.05 617.5p – 3.3.06 68,216 572,674 245,1058
136,43231.4.05 617.5p – 9.3.07 136,432 1,145,347
276,200429.6.05 706p – 7.3.08 276,200 2,318,699
Total 480,848 4,036,720
Richard Hartman 111,930118.6.03 445p 67,158 660p 443,243 11.3.05 –
167,900218.6.03 445p – 3.3.06 167,900 1,409,521 603,2758
165,130324.6.04 549.5p – 9.3.07 165,130 1,386,267
214,870429.6.05 706p – 7.3.08 214,870 1,803,834
Total 547,900 4,599,622
Stevan Porter 113,810118.6.03 445p 68,286 660p 450,688711.3.05 –
170,710218.6.03 445p – 3.3.06 170,710 1,433,111 613,3728
142,290324.6.04 549.5p – 9.3.07 142,290 1,194,525
174,900429.6.05 706p – 7.3.08 174,900 1,468,286
Total 487,900 4,095,922
Richard Solomons 110,110118.6.03 445p 66,066 660p 436,036 11.3.05 –
165,160218.6.03 445p – 3.3.06 165,160 1,386,519 593,4318
144,990324.6.04 549.5p – 9.3.07 144,990 1,217,192
176,550429.6.05 706p – 7.3.08 176,550 1,482,138
Total 486,700 4,085,849
Former Directors
Richard North 188,760118.6.03 445p 113,256 660p 747,490 11.3.05 –
283,1402, 5 18.6.03 445p – 3.3.06 259,54542,178,881 932,5628
248,5603, 5 24.6.04 549.5p – 9.3.07 144,99341,217,217
Total 404,538 3,396,098
Sir Ian Prosser 65,4101, 6 18.6.03 445p 39,246 660p 259,024 11.3.05 –
65,4102, 6 18.6.03 445p – 3.3.06 65,410 549,117 235,0238
Total 65,410 549,117
Total 20,763,328
1 This ‘transitional’ award was based on performance to 31 December 2004 where the performance measure related to the Company’s Total Shareholder Return (TSR)
against a group of 11 other comparator companies. The number of shares released was graded, according to where the Company finished in the comparator group, with
100% of the award being released for first or second position and 20% of the award being released for sixth place. The Company finished in fourth place and accordingly
60% of the award vested on 11 March 2005.
2 This award is based on performance to 31 December 2005 where the performance measure relates to both the Company’s TSR against a group of 11 other comparator
companies and growth in return on capital employed (ROCE). The number of shares released is graded, according to a) where the Company finishes in the TSR
comparator group, with 50% of the award being released for first or second position and 10% of the award being released for sixth place; and b) growth in ROCE, with
50% of the award being released for 80% growth and 10% of the award being released for 30% growth.
3 This award is based on performance to 31 December 2006 where the performance measure relates to both the Company’s TSR against a group of 10 other comparator
companies and growth in ROCE.
4 This award is based on performance to 31 December 2007 where the performance measure relates to both the Company’s TSR against a group of 10 other comparator
companies and cumulative annual growth of rooms in the IHG system against a group of nine other comparator companies.
5 Richard North’s awards were pro-rated to reflect his contractual service during the applicable performance periods.
6 Sir Ian Prosser’s awards were pro-rated to reflect his actual service during the applicable performance periods.
7 The value of Stevan Porter’s shares at vesting includes £43,190 that was chargeable to UK income tax.
8 The Company finished in fifth place in the TSR group and achieved ROCE growth of 46%. Accordingly, 42.8% of the award will vest on 3 March 2006.
remuneration report
30 InterContinental Hotels Group 2005