Holiday Inn 2013 Annual Report Download - page 77

New incentive plan rules
The rules of our annual and long-term incentive plans are due
to expire in 2015, and, in line with good practice, we will present
updated rules for these plans to shareholders at the 2014 AGM at
the same time as the Directors’ Remuneration Policy and Annual
Report on Directors’ Remuneration and Implementation of
Remuneration Policy in 2014. These rules reflect the policy set out
in this Directors’ Remuneration Report.
Conclusion
The Board recommends this Directors’ Remuneration Policy
to shareholders. It will provide the framework to allow us to
recruit, motivate and retain the talent IHG needs and to ensure
the alignment of executive remuneration with the creation of
value for shareholders.
This Director’s Remuneration Report was approved by the Board
on 17 February 2014.
Luke Mayhew, Chairman of the Remuneration Committee
17 February 2014
Pension arrangements
We are continuing to make progress in reducing the risks and
potential liabilities from our legacy UK defined benefit pension
scheme. This was closed to new members in 2002 and closed
to future accruals in June 2013, following which the plan liabilities
of the defined benefit section of the InterContinental Hotels UK
Pension Plan were also secured with an insurer. We continue to
work to remove defined benefit liabilities and risks from the
Company’s balance sheet. The focus in 2014 is on the historic
Enhanced Early Retirement Facility (EERF) pension arrangements,
the InterContinental Executive Top-Up Scheme (ICETUS) and the
Six Continents Executive Top-Up Scheme (SCETUS).
• A relatively small group of executives have had a non-contractual
opportunity to retire at 55 without a reduction in their pension
(EERF). This requires the consent of the Company. This facility
will be phased out. As part of this phasing out there will be an
immediate increase in the age from which most participants are
eligible to request the facility. Richard Solomons’ facility is being
phased out in line with all other plan members.
• During 2014 , we also plan to offer members of the ICETUS/SCETUS,
the unfunded, unregistered top-up plan, an opportunity to receive
a cash alternative to benefits under the ICETUS/SCETUS. This will
be calculated at a rate which is fair and reasonable, both to scheme
members and shareholders. Richard Solomons currently
participates in the ICETUS arrangement.
Following these changes, we will have largely completed the
process of redrawing IHG’s UK pension arrangements and
minimising the risks to the Company going forward from the
historic defined benefit arrangements; these changes should
significantly reduce IHG’s pension liability risks.
Content of the 2013 Directors’
Remuneration Report
76 Governance
77 Strategic context
78-86 Directors’ Remuneration Policy
87-96 Annual Report on Directors’ Remuneration
97 Implementation of Remuneration Policy
in 2014
At the Company’s forthcoming AGM on 2 May 2014,
the Directors’ Remuneration Policy will be subject to
a binding vote by shareholders, and the Annual Report
on Directors’ Remuneration and Implementation of
Remuneration Policy in 2014 together are subject to
an advisory vote by shareholders.
Governance 75
OVERVIEW STRATEGIC REPORT GOVERNANCE
GROUP FINANCIAL STATEMENTS
PARENT COMPANY FINANCIAL STATEMENTS ADDITIONAL INFORMATION