Holiday Inn 2011 Annual Report Download - page 56

54 IHG Annual Review and Summary Financial Statement 2011
SUMMARY REMUNERATION REPORT continued
Pensions
It was announced on 29 September 2011 that the UK registered defined benefit InterContinental Hotels UK Pension Plan (the IC Plan)
would close to future accrual for existing members with effect from 1 July 2013. Richard Solomons and other senior UK-based executives
participate on the same basis in the executive section of the IC Plan and the InterContinental Executive Top-Up Scheme (ICETUS).
Andrew Cosslett, who ceased to be a Director on 30 June 2011, also participated in the IC Plan and ICETUS.
Tracy Robbins participates in the executive defined contribution section of the IC Plan. Employer contributions to the IC Plan made for
Tracy Robbins since becoming an Executive Director in 2011 amounted to £10,032. In addition, Ms Robbins received a salary supplement
in lieu of pension contributions of £33,175. Thomas Singer received a salary supplement in lieu of pension contributions of £41,979.
Kirk Kinsell and other senior US-based executives participate in US retirement benefit plans. James Abrahamson, who ceased to be
a Director on 13 June 2011, also participated in the US retirement benefit plan.
The following table sets out the pension benefits of the Executive Directors in the UK defined benefit plans:
Andrew Richard
Cosslett1 Solomons2
£ £
Transfer value of accrued benefits at 1 January 2011 3,438,100 4,708,400
Transfer value of accrued benefits at 31 December 2011 5,643,300 6,999,800
Increase in transfer value over the year, less Directors’ contributions 2,184,800 2,265,400
Increase in accrued pension (per annum) 10,300 52,900
Accrued pension at 31 December 2011 (per annum) 180,000 304,300
Age at 31 December 2011 56 50
1 When Andrew Cosslett ceased pensionable service with the Group on 30 June 2011, under the terms of the IC Plan his pension entitlement was £177,800 per annum
before any cash commutation. In line with the Enhanced Early Retirement Facility (EERF) which is available to all members of the plan, this pension was not reduced on
retirement. This facility enables members to retire without reduction in pension if they are within 5 years of normal retirement age. Although the EERF is non-contractual,
its continuation formed part of the agreement with trustees on closure of the defined benefit section of the IC Plan, and the provisions of the facility state that while in place, it
cannot reasonably be refused to retiring employees.
2 The increase in the transfer value of accrued benefits for Richard Solomons arises partly from the increase in salary resulting from his appointment as Chief Executive
and partly from a change in the transfer value basis resulting from lower gilt yields.
Contributions made by and in respect of James Abrahamson and Kirk Kinsell to the US defined contributions plans are1:
James Kirk
Abrahamson2 Kinsell
£ £
Directors’ contributions to DCP in 2011 4,200 204,200
Directors’ contributions to 401(k) in 2011 6,100 13,700
Company contribution to DCP in 2011 4,200 99,600
Company contribution to 401(k) in 2011 6,100 6,100
Age at 31 December 2011 56 56
1 Sterling values have been calculated using an exchange rate of $1=£0.62.
2 James Abrahamson ceased to be a Director upon his resignation from IHG on 13 June 2011. The Company contribution to the DCP shown for Mr Abrahamson excludes
Company contributions of £36,200 that were forfeited by Mr Abrahamson because he ceased to be a member of the DCP before these contributions vested five years after
joining the DCP. Similarly, an amount of £14,000 of Company contributions to the DCP included in the 2010 Annual Report and Accounts has been forfeited.
Annual Bonus Plan deferred share awards
Directors’ pre-tax share interests during the year were as set out below. No matching shares are provided on awards.
Value based
on share
price of
ABP ABP ABP Value at ABP 1,157.0p at
awards held at awards during shares vested vesting awards held at 31 Dec 2011
Directors 1 Jan 2011 the year during the year £ 31 Dec 2011 £
Andrew Cosslett1 175,939 51,005 226,944 2,986,642 –
Richard Solomons 112,18 3 32,295 45,634 616,424 98,844 1,14 3,625
James Abrahamson2 – 27,758 – –
Kirk Kinsell 61,158 27,375 19,731 266,526 68,802 796,039
Tracy Robbins 57,4 38 20,377 24,306 328,325 53,509 619,099
Thomas Singer – – – –
Total 406,718 158,810 221,155 2,558,763
1 Andrew Cosslett retired as Chief Executive on 30 June 2011. Shares awarded to him in respect of financial years 2008 and 2010 were released early on 1 July 2011.
2 James Abrahamson resigned as a Director on 13 June 2011. Shares awarded to him in respect of financial year 2010 have lapsed.
All Executive Directors participated in the ABP during the year ended 31 December 2011 except for Thomas Singer, who did not participate
having joined IHG in September 2011.