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THE BOARD, SENIOR
MANAGEMENT AND
THEIR RESPONSIBILITIES
Remuneration report 45
5 Long-term reward
Annual Bonus Plan (ABP)
Messrs Cosslett, Porter and Solomons participated in the ABP during the year ended 31 December 2008. Messrs Cosslett and Solomons
are expected to receive an award on 23 February 2009. Matching shares are no longer awarded. Directors’ pre-tax share interests during
the year were:
ABP Value
ABP shares based
Awards vested on share
during Market during Market ABP price of
ABP the year price the year price Value Awards Planned 562p at
Awards held 1 Jan 2008 to Award per share 1 Jan 2008 to Vesting per share at vesting held at vesting 31 Dec 2008
Directors at 1 Jan 2008 31 Dec 2008 date at award 31 Dec 2008 date at vesting £ 31 Dec 2008 date £
Andrew Cosslett 28,87728.3.06 853.67p 28,877 10.3.08 780p 225,241 –
28,87828.3.06 853.67p 28,878 8.3.09 162,294
55,870326.2.07 1235p 55,870 26.2.10 313,989
71,287425.2.08 819.67p 71,287 25.2.11 400,633
Total 156,035 876,916
Stevan Porter 26,978116.3.05 653.67p 26,978 17.3.08 735p 198,2887–
18,53128.3.06 853.67p 18,531 10.3.08 780p 144,5427–
18,53028.3.06 853.67p 18,530 7.11.086542.5p 100,525 –
29,778326.2.07 1235p 29,778 7.11.086542.5p 161,546 –
35,743525.2.08 819.67p 35,743 7.11.086542.5p 193,906 –
Total –
Richard Solomons 29,021116.3.05 653.67p 29,021 17.3.08 735p 213,304 –
18,45928.3.06 853.67p 18,459 10.3.08 780p 143,980 –
18,45928.3.06 853.67p 18,459 8.3.09 103,740
35,757326.2.07 1235p 35,757 26.2.10 200,954
45,634825.2.08 819.67p 45,634 25.2.11 256,463
Total 99,850 561,157
Former Directors
Richard Hartman 29,447116.3.05 653.67p 29,447 17.3.08 735p 216,435 –
17,69828.3.06 853.67p 17,698 10.3.08 780p 138,044 –
17,69628.3.06 853.67p 17,696 28.3.089772.5p 136,702 –
51,281326.2.07 1235p 51,281 28.3.089772.5p 396,146 –
Total –
1 This award was based on 2004 financial year performance where
the performance measures were related to EPS, EBIT and personal
performance. Total shares held include matching shares.
2 This award was based on 2005 financial year performance where
the performance measures were related to EPS, EBIT and personal
performance. Total shares held include matching shares.
3 This award was based on 2006 financial year performance where
the performance measures were related to EPS and EBIT. Total shares
held include matching shares.
4 This award was based on 2007 financial year performance where the
performance measures were related to Group EBIT and net annual rooms
additions. The bonus target was 50% of base salary. Andrew Cosslett was
awarded 33% for Group EBIT performance and 19.5% for net annual rooms
additions. Andrew Cosslett’s total bonus was therefore 52.5% of his base
salary. One matching share was awarded for every two bonus shares earned.
5 This award was based on 2007 financial year performance where the
performance measures were related to Americas’ EBIT and net annual
rooms additions. The bonus target was 50% of base salary. Stevan Porter
was awarded 25.75% for Americas’ EBIT performance and 19.5% for net
annual rooms additions. Stevan Porter’s total bonus was therefore 45.25%
of his base salary. One matching share was awarded for every two bonus
shares earned. Stevan Porter also received a cash payment of £3,550.52
in lieu of dividends relating to bonus shares.
6 In accordance with Plan rules, Stevan Porter’s ABP shares held at 1 January
2008 and awarded during 2008 (in respect of 2007 performance), and which
were due to vest from 2009 onwards, vested early at the discretion of the
Remuneration Committee, following his death on 7 August 2008. The value
of these entitlements was calculated as at 7 November 2008. A cash
payment of £1,525.06 in lieu of dividends relating to bonus shares was paid
to his estate. The shares will be transferred to Mr Porter’s estate following
completion of UK probate in due course.
7 The value of Stevan Porter’s shares at vesting includes £31,130 that was
chargeable to UK income tax.
8 This award was based on 2007 financial year performance where the
performance measures were related to Group EBIT and net annual rooms
additions. The bonus target was 50% of base salary. Richard Solomons was
awarded 33% for Group EBIT performance and 19.5% for net annual rooms
additions. Richard Solomons’ total bonus was therefore 52.5% of his base
salary. One matching share was awarded for every two bonus shares earned.
9 At the discretion of the Remuneration Committee, all of Richard Hartman’s
shares vested six months after his retirement date of 25 September 2007.