Holiday Inn 2012 Annual Report Download - page 73

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OVERVIEW BUSINESS REVIEW GOVERNANCE
GROUP FINANCIAL
STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS OTHER INFORMATION
Directors’ Remuneration Report 71
B – Executive shareholding requirement
The Committee believes that share ownership by Executive Directors and senior executives strengthens the link between the individuals’
personal interests and those of the shareholders.
Executive Directors are expected to hold all shares earned (net of any share sales required to meet personal tax liabilities) until the guideline
shareholding requirement is achieved.
The table below excludes share options held by Richard Solomons, details of which can be found on page 78.
C – Annual Bonus Plan(ABP)
Structure
In 2012, Executive Directors participated in the ABP, which will be
replaced from 2013 by the APP, details of which can be found on
page 67.
The structure of the ABP is as follows:
ABP
2012
30%
individual
50%
cash
Performance
measures Payment
structure
70%
EBIT
50% shares
(deferred for
three years)
The measures for 2012 were:
• Global EBIT achievement against target for 2012:
– threshold payout: 90% of target performance;
– maximum payout: 110% of target performance; and
– straight-line vesting in between.
• OPR – based on achievement of specific individual objectives
linked directly to strategic priorities, and an assessment against
leadership competencies and behaviours. The objectives and
OPRs are reviewed and agreed by the Committee.
2012 target and maximum payments
Award as % of salary
Key performance
Measure indicator Target Maximum
Financial EBIT (70%) 80.5 161
Individual OPR (30%) 34.5 69
Total for 2012 115 200*
* Combined EBIT and OPR payout subject to a maximum of 200% of base salary.
Outcome for 2012
2012 EBIT achieved was 101.7% of target for the year. Based on this
performance, the following table shows the level of 2012 awards.
50% was paid in cash and 50% in deferred shares that will vest after
three years.
EBIT % OPR % Total award as
Director award award % of salary
Richard Solomons 93.8 43.1 136.9
Kirk Kinsell 93.8 34.5 128.3
Tracy Robbins 93.8 51.8 145.6
Tom Singer 93.8 34.5 128.3
Shares held by Executive Directors
Shares held outright Total shares and awards4 Guideline shareholding requirement
ABP deferred
Guideline Shares held share LTIP share Total shares
shareholding as outright as awards as awards as and awards as
Director % of salary % of salary1 % of salary2 % of salary3 % of salary4
Richard Solomons 300 763 153 693 1,609
Kirk Kinsell 200 557 180 776 1,513
Tracy Robbins 200 355 167 706 1,228
Tom Singer5 200 66 0 715 781
Percentages are based on share price of 1,707.0p per share as at 31 December 2012.
1 Shares held outright by each Executive Director with no restrictions.
2 ABP deferred share awards subject to risk of forfeiture if employment ceases.
3 LTIP share awards subject to achievement of corporate performance targets.
4 Includes shares held outright, ABP deferred shares and LTIP share awards.
5 Tom Singer joined in 2011 and did not qualify for the 2011 ABP deferred share award.
01,600200 400 600 800 1,000 1,200 1,400
%
Richard
Solomons
Kirk
Kinsell
Tom
Singer
Tracy
Robbins