Holiday Inn 2006 Annual Report Download - page 39

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Remuneration report
IHG The Board, senior management and their responsibilities 37
Performance Restricted Share Plan (PRSP)
In 2006, 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 2005, 31 December 2006, 31 December
2007 and 31 December 2008 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 2006, the Company finished in third place in the TSR group and achieved
ROCE growth of 98.2%. Accordingly, 62.4% of the award will vest on 21 February 2007.
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 1262.0p at 1262.0p at
held at 1.1.06 to Award share at 1.1.06 to share at vesting vesting held at 31.12.06 31.12.06
Directors 1.1.06 31.12.06 date award 31.12.06 vesting £ date 31.12.06 £ £
Andrew Cosslett 68,21611.4.05 617.5p 29,196 858p 250,502 3.3.06 –
136,43221.4.05 617.5p – 21.2.07 136,432 1,721,772 1,074,3868
276,200329.6.05 706p – 20.2.08 276,200 3,485,644
200,74043.4.06 941.5p – 18.2.09 200,740 2,533,339
Total 613,372 7,740,755
Richard Hartman 167,900118.6.03 445p 71,861 858p 616,567 3.3.06 –
165,130224.6.04 549.5p – 21.2.07 165,130 2,083,941 1,300,3808
214,870329.6.05 706p – 20.2.08 214,870 2,711,660
146,11043.4.06 941.5p – 18.2.09 146,110 1,843,909
Total 526,110 6,639,510
Stevan Porter 170,710118.6.03 445p 73,063 858p 626,88173.3.06 –
142,290224.6.04 549.5p – 21.2.07 142,290 1,795,700 1,120,5178
174,900329.6.05 706p – 20.2.08 174,900 2,207,238
132,24043.4.06 941.5p – 18.2.09 132,240 1,668,869
Total 449,430 5,671,807
Richard Solomons 165,160118.6.03 445p 70,688 858p 606,503 3.3.06 –
144,990224.6.04 549.5p – 21.2.07 144,990 1,829,774 1,141,7798
176,550329.6.05 706p – 20.2.08 176,550 2,228,061
128,47043.4.06 941.5p – 18.2.09 128,470 1,621,292
Total 450,010 5,679,127
Former Directors
Richard North 259,5451, 5 18.6.03 445p 111,085 858p 953,109 3.3.06 –
144,9932, 5 24.6.04 549.5p – 21.2.07 144,993 1,829,812 1,141,8038
Total 144,993 1,829,812
Sir Ian Prosser 65,4101, 6 18.6.03 445p 27,995 858p 240,197 3.3.06 –
Total –
Total 27,561,011
1 This award was based on performance to 31 December 2005 where the performance measure related to both the Company’s Total Shareholder Return (TSR)
against a group of 11 other comparator companies and growth in return on capital employed (ROCE). The number of shares released was graded, according
to a) where the Company finished 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.
The Company finished in fifth place in the TSR group and achieved ROCE growth of 46%. Accordingly 42.8% of the award vested on 3 March 2006.
2 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 eight other
comparator companies and growth in 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 fifth place; and b) growth in ROCE, with 50% of the award
being released for 141.6% growth and 10% of the award being released for 70% growth.
3 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 eight other
comparator companies and the relative cumulative annual growth rate (CAGR) of rooms in the IHG system.
4 This award is based on performance to 31 December 2008 where the performance measure relates to both the Company’s TSR against a group of nine other
comparator companies and the relative CAGR of rooms in the IHG system.
5 Richard North’s awards were pro-rated to reflect his contractual service during the applicable performance periods.
6 Sir Ian Prosser’s award was pro-rated to reflect his actual service during the applicable performance period.
7 The value of Stevan Porter’s shares at vesting includes £44,404 that was chargeable to UK income tax.
8 The Company finished in third place in the TSR group and achieved ROCE growth of 98.2%. Accordingly, 62.4% of the award will vest on 21 February 2007.