Holiday Inn 2012 Annual Report Download - page 68

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66 IHG Annual Report and Financial Statements 2012
D – Fixed and variable pay mix
Individual reward elements for all Executive Directors and Executive Committee members are designed to provide the appropriate balance
between fixed remuneration and variable ‘at risk’ reward, linked to both the performance of the Group and the achievements of the individual.
The usual pay mix for Executive Directors is as follows at target and maximum levels:
Target Maximum
– Target performance assumes APP award is at target (115% of salary) and LTIP award vests at 50% of potential maximum (102.5% of salary, measured at the time of grant).
– Maximum performance assumes APP award is at maximum (200% of salary) and LTIP award vests at 100% of potential maximum (205% of salary, measured at the time
of grant).
– Benefits and pensions are excluded.
The Committee also reviews the balance of fixed and variable remuneration provided to the wider executive population, to ensure these are
appropriate relative to the Executive Directors and to market practice.
■ Salary 32%
■ LTIP 32%
■ APP 36%
■ Fixed: cash 32%
Variable: cash
and shares 68%
■ Salary 20%
■ LTIP 40%
■ APP 40%
■ Fixed: cash 20%
Variable: cash
and shares 80%
E – Salary and benefits
• Base salary is the only element of remuneration which is
pensionable.
• In addition to salary, benefits are provided to Executive Directors,
who are all based in the UK or US, in accordance with local
market practice.
• The overall budget for salary increases for IHG corporate
employees in the UK and US, and the overall increase in the
Directors’ salaries for 2013 is shown below:
UK corporate
employees
US corporate
employees
Executive
Directors
3.0% 3.0% 2.5%
Executive Director annual salaries for 2012 and 2013
2013 2013 2012 2012
Director £ $ £ $
Richard Solomons 739,000 721,000
Kirk Kinsell* 774,000 755,400
Tracy Robbins 424,300 412,000
Tom Singer 550,800 540,000
* Kirk Kinsell is paid in US dollars and his annual base salary for 2012 and 2013 is
shown in US dollars above. The equivalent sterling values calculated using an
exchange rate of $1=£0.63 are: 2012 – £476,562; and 2013 – £488,296.
Governance: Directors’ Remuneration Report continued