Holiday Inn 2005 Annual Report Download - page 35

At 31 December 2005, the Executive Directors of the Company, as
potential beneficiaries under the Company’s Employee Benefit
Trust (the Trust), were each technically deemed to be interested
in 2,940,245 unallocated IHG PLC shares held by the Trust. In the
period from 31 December 2005 to 1 March 2006, a further 511,833
shares were released from the Trust, reducing the number of
shares in which these Directors hold a residual interest to
2,428,412 in total.
The Company’s Register of Directors’ Interests, which is open to
inspection at the Registered Office, contains full details of
Directors’ shareholdings and share options.
7 DIRECTORS’ PENSIONS
The following information relates to the pension arrangements
provided for Messrs Cosslett, Hartman and Solomons under the
executive section of the InterContinental Hotels UK Pension Plan
(the IC Plan) and the unfunded InterContinental Executive Top-Up
Scheme (ICETUS).
The executive section of the IC Plan is a funded, Inland Revenue
approved, final salary, occupational pension scheme. 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’, ICETUS is used to increase
pension and death benefits to the level that would otherwise
have applied.
Richard Hartman, who reached the IC Plan normal pension age of
60 on 30 January 2006, ceased to be an active member of the
IC Plan and ICETUS with effect from that date, and in future will
participate in the InterContinental Hotels Group International
Savings and Retirement Plan.
Stevan Porter has 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).
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.
InterContinental Hotels Group 2005 33
DIRECTORS’ PENSION BENEFITS
Increases in
transfer value Accrued
Directors’ over the Increase Increase pension at
contributions Transfer value year, less in accrued in accrued 31 Dec
Age at in the year of accrued benefits Directors’ pension pension 2005
31 Dec (note 1) 1 Jan 2005 31 Dec 2005 contributions (note 2) (note 3) (note 4)
Directors 2005 ££££ £ pa £ pa £ pa
Andrew Cosslett 50 14,400 Nil 266,900 252,500 19,700 19,700 19,700
Richard Hartman 59 15,700 1,189,800 1,848,200 642,700 23,400 21,500 86,600
Richard Solomons 44 15,700 834,100 1,227,100 377,300 22,500 19,600 119,300
note 1: Contributions paid in the year by the Directors under the terms of the plans.
note 2: The absolute increase in accrued pension during the year.
note 3: The increase in accrued pension during the year 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 31 December 2005.
The figures shown in the above table relate to the final salary plans only. For defined contribution plans, the contributions made by and
in respect of Stevan Porter during the year are:
Director’s contribution to
DCP 401(k)
££
Stevan Porter 20,300 5,800
By order of the Board
Richard Winter
Company Secretary
1 March 2006
Company contribution to
DCP 401(k)
££
Stevan Porter 59,400 4,700