Holiday Inn 2012 Annual Report Download - page 65

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OVERVIEW BUSINESS REVIEW GOVERNANCE
GROUP FINANCIAL
STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS OTHER INFORMATION
Directors’ Remuneration Report 63
A – Key remuneration principles
IHG’s executive remuneration principles are designed to drive the delivery of strategic objectives by:
• attracting and retaining high-quality executives in an environment where compensation is based on global market practice;
• aligning rewards for executives with the achievement of business performance targets, strategic objectives and returns to shareholders;
• supporting equitable treatment between members of the same executive team; and
• facilitating global assignments and relocations.
IHG’s remuneration structure for senior executives places a strong emphasis on performance-related reward. The Committee believes that
it is important to reward management, including the Executive Directors, for targets achieved, provided those targets are stretching.
B – Link with strategy
Our strategy (summarised below) is the driver of our reward structure, and is further explained on pages 11 to 17 of this Annual Report.
The current performance measures used in IHG’s incentive plans are aligned with our strategic priorities, which will enable us to achieve our
Vision of becoming one of the great companies in the world by creating Great Hotels Guests Love.
2. Policy: remuneration policy for 2013
Where we compete How we win
Relevant consumer segments
Most attractive markets
Appropriate business model
Responsible Business
Long Term Incentive Plan
Measures balance the quality of hotels
with the speed at which we grow:
Relative net rooms growth
Supports our business model, segment
and market strategies to grow System size
over three years
Relative RevPAR growth
Reflects the sustainable power of our Brands,
scale and experience and engaged workforce
Focusses growth on quality rooms in
key markets
Relative TSR
Provides alignment with shareholder returns
Annual Performance Plan
Measures provide focus on key
drivers of sustainable growth:
Heartbeat
Increases guest satisfaction as an
indicator of the strength of our Brands
Engagement
Increases the engagement of our
People who bring our Brands to life
EBIT
Provides annual focus on earnings growth
driven by core operating inputs, namely
rooms growth, RevPAR, fee revenue
and margins
Brands
People
Delivery
Portfolio of preferred Brands
Talented People
Best-in-class Delivery
Responsible Business