Holiday Inn 2012 Annual Report Download - page 66

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64 IHG Annual Report and Financial Statements 2012
Reward element Purpose and link to strategy Operation
Salary
(cash)
Recognises the market value of
the role and the individual’s skill, performance
and experience.
Reviewed annually and fixed for 12 months from 1 April.
Committee considers:
• business and individual performance;
• current remuneration against internal and external
benchmarks; and
• average salary increases for the wider IHG workforce.
When external benchmarking is used, the comparator groups
are chosen having regard to:
• size – market capitalisation, turnover, profits and the
number of employees;
• diversity and complexity of the business;
• geographical spread of the business; and
• relevance to the hotel industry.
APP
(50% cash
and 50%
shares)
Drives and rewards annual performance
against both financial and non-financial metrics.
Aligns individuals and teams with key strategic
priorities of Brands, People and Delivery.
Aligns short-term annual performance with
strategy to generate long-term returns
to shareholders.
Takes into account personal performance
of individuals.
Reviewed annually with targets set in line with strategic objectives.
Regional as well as global targets are used when appropriate.
Payment is determined by the Committee, which has certain
specified discretion over award levels, after the end of the year.
LTIP
(shares)
Drives and rewards delivery of sustained
long-term performance on measures that
are aligned with the interests of shareholders.
Annual awards over IHG shares, which vest after
three years, subject to the achievement of corporate
performance targets.
Reviewed annually with targets set in line with strategic
objectives. Vesting is confirmed by the Committee after the
end of the vesting period, with discretion to reduce vesting
level if the quality of the underlying performance of the
Company is not satisfactory.
Pension Helps recruit and retain.
Rewards long-term individual performance.
The following plans are operated:
• for UK executives, the executive section of the
InterContinental Hotels UK Pension Plan (the IC Plan),
which has a defined benefit section (UK DB Plan) and
a defined contribution section (UK DC Plan);
• for UK executives, the InterContinental Executive Top-Up
Scheme (ICETUS);
• for US executives, a DC 401(k) Plan (US 401(k) Plan) and
a DC Deferred Compensation Plan (US Deferred
Compensation Plan); and
• for non-UK and non-US executives, the InterContinental
Hotels Group International Savings and Retirement Plan,
and other local plans.
A cash allowance in lieu of pension benefits is offered for
UK executives.
C – Remuneration policy summary
The following table shows a summary of the individual elements of remuneration provided to the Executive Directors for 2013.
The APP replaces the ABP for senior executives from 2013.
Governance: Directors’ Remuneration Report continued