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OVERVIEW BUSINESS REVIEW
THE BOARD,
SENIOR MANAGEMENT AND
THEIR RESPONSIBILITIES
GROUP FINANCIAL
STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS USEFUL INFORMATION
Outcomes in 2010 and progress on all current LTIP cycles
The specific vesting performance conditions and position as at 31 December 2010 for all conditional LTIP awards made between 2008 and
2010 are set out in the following table:
Performance
measure
Threshold
performance
Maximum
performance
Threshold1
vesting
Maximum1
vesting Weighting
Maximum
award
Outcome/
current position
2008/2010 cycle
TSR Growth equal to
the index
Growth exceeds the
index by 8% or more
20% 100% 50% 135% Growth outperformance
of 8.0%
EPS Growth of 6% pa Growth of 16% pa
or more
20% 100% 50% 135% Growth of 9.6% pa
Total vesting 73.8% of maximum
award
2009/2011 cycle2
TSR Growth equal to
the index
Growth exceeds the
index by 8% or more
20% 100% 66.7% 102.5% Growth outperformance
of 6.1%
EPS Growth of 0% pa Growth of 10% pa
or more
0% 100% 33.3% 102.5% Growth of –1.0% pa
2010/2012 cycle3
TSR Growth equal to
the index
Growth exceeds the
index by 8% or more
20% 100% 50% 102.5% Growth outperformance
of –5.4%
EPS Growth of 5% pa Growth of 15% pa
or more
20% 100% 50% 102.5% Growth of 26% pa
1 Vesting between threshold and maximum occurs on a straight-line basis.
2 Two years of cycle completed.
3 One year of cycle completed.
6. Performance graph
Throughout 2010, the Company was a member of the FTSE 100 index and, for remuneration purposes, used a TSR comparator group of the
Dow Jones World Hotels index. Accordingly, the Committee has determined that these are the most appropriate market indices against
which to test the Company’s performance. The graph below shows the TSR performance of IHG from 31 December 2005 to 31 December
2010, assuming dividends are reinvested, compared with the TSR performance achieved by the FTSE 100 index and the Dow Jones World
Hotels index. Over the five-year period, IHG outperformed the FTSE 100 index by 39.6% and the Dow Jones World Hotels index by 18.5%.
Total Shareholder Return: InterContinental Hotels Group PLC v FTSE 100 and v Dow Jones World Hotels index
Source: Datastream
InterContinental Hotels Group PLC –
Total Shareholder Return Index
FTSE 100 –
Total Shareholder Return Index
Dow Jones World Hotels –
Total Shareholder Return Index
31 Dec 201031 Dec 200931 Dec 200831 Dec 200731 Dec 200631 Dec 2005
250
200
150
100
50
0
Remuneration report 53