Holiday Inn 2007 Annual Report Download - page 41

THE BOARD, SENIOR MANAGEMENT AND THEIR RESPONSIBILITIES
Remuneration report 39
THE BOARD, SENIOR MANAGEMENT AND THEIR RESPONSIBILITIES
2.5 Performance graph
Throughout the year, the Company has been a member of the FTSE 100 index. Accordingly, the Committee has determined that this is
the most appropriate market index against which to test the Company’s performance. The graph below shows the TSR performance of
Six Continents PLC from 1 October 2002 up to 14 April 2003, and subsequently the performance of InterContinental Hotels Group PLC,
assuming dividends are reinvested, compared with the TSR performance achieved by the FTSE 100 index.
Total Shareholder Return: InterContinental Hotels Group PLC v FTSE 100
450
400
350
300
250
200
150
100
50
0
Source: Datastream
IHG shares listed 15 April 2003
InterContinental Hotels Group PLC – Total Shareholder Return Index
(Six Continents PLC up to 14 April 2003)
FTSE 100 – Total Shareholder Return Index
31 Dec 200731 Dec 200631 Dec 200531 Dec 200431 Dec 20031 Oct 2002
2.6 Contracts of service
a) Policy
The Remuneration Committee’s policy is for Executive Directors
to have rolling contracts with a notice period of 12 months.
Andrew Cosslett, Stevan Porter and Richard Solomons have
service agreements with a notice period of 12 months. All new
appointments are intended to have 12-month notice periods.
However, on occasion, to complete an external recruitment
successfully, a longer initial period reducing to 12 months
may be used, following guidance in the Combined Code.
No provisions for compensation for termination following change
of control, or for liquidated damages of any kind, are included
in the current Directors’ contracts. In the event of any early
termination of an Executive Director’s contract, the policy is
to seek to minimise any liability.
Non-Executive Directors have letters of appointment. David
Webster’s appointment as Non-Executive Chairman, effective
from 1 January 2004, is subject to six months’ notice. The dates
of appointment of the other Non-Executive Directors are set
out on page 31.
All Directors’ appointments and subsequent reappointments
are subject to election and re-election by shareholders.
b) Directors’ contracts
Contract Unexpired term/
Director effective date1notice period
Andrew Cosslett 03.02.05 12 months
Richard Hartman215.04.03 N/A
Stevan Porter 15.04.03 12 months
Richard Solomons 15.04.03 12 months
1 Each of the Executive Directors signed a letter of appointment, effective
from completion of the June 2005 capital reorganisation of the Group on
the same terms as their original service agreements.
2 Richard Hartman retired in September 2007, at which point his rolling
contract with 12 months’ notice expired.
2.7 Policy regarding pensions
Andrew Cosslett, Richard Solomons and other senior UK-based
employees participate on the same basis in the executive section
of the registered InterContinental Hotels UK Pension Plan and, if
appropriate, the InterContinental Executive Top-Up Scheme. The
latter is an unfunded arrangement, but with appropriate security
provided via a fixed charge on a hotel asset. As an alternative to
these arrangements, a cash allowance may be taken.
Stevan Porter and senior US-based executives participate in US
retirement benefits plans.
With effect from 30 January 2006, Richard Hartman ceased to be
an active member of the InterContinental Hotels UK Pension Plan
and InterContinental Executive Top-Up Scheme, and from that
date up to his retirement on 25 September 2007, he participated
in the InterContinental Hotels Group International Savings and
Retirement Plan.
Executives in other countries participate in these plans or
local plans.