Holiday Inn 2013 Annual Report Download - page 79

51
2
3
4
Long Term Incentive Plan
Relative net rooms growth – Supports our business
model, segment and market strategies to grow IHG System size
Relative RevPAR growth – Reflects the sustainable power
of our brands and our scale, and focuses growth on quality
rooms in key markets
Relative TSR – Provides alignment with shareholder returns
Measures balance the quality of hotels with the speed at
which we grow:
Attractive markets
Relative TSR growth reflects
value created for shareholders
and is a key element of the
Long Term Incentive Plan.
Highest opportunity
segments
Managed and
franchised model
Commitment to responsible
business practices
Scale and efficiency
of operations
Investment in developing great
talent and technology platforms
Preferred brands
delivered through
our people
Superior owner
proposition
Strong brand portfolio
& loyalty programme
Effective channel
management
Annual Performance Plan
Guest HeartBeat – The Guest HeartBeat score reflects guest
satisfaction and is an indicator of the strength of our brands
Employee Engagement – Engaged employees are key to our
business and our people deliver our preferred brands
EBIT – Provides annual focus on earnings growth driven
by core operating inputs, namely rooms growth, RevPAR,
fee revenue and profit margins
Measures provide focus on key drivers of sustainable growth:
• Guest HeartBeat
• Employee Engagement
survey scores
• Revenue KPIs
• Net rooms supply
• Global RevPAR
Build and
leverage scale
Targeted PortfolioWinning Model
Value creation: Superior shareholder returns
KPIs reflected
in incentive
plans
Disciplined Execution
Strategic context
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.
Link with strategy
Our strategy for high-quality growth (detailed on pages 18 and 19),
is the driver of our reward structure.
The Key Performance Indicators (KPIs) (set out on pages 38 and 39),
monitor our success in achieving our strategy and measure the
progress of our Group to deliver high-quality growth. They are
organised around the elements of our strategy: Winning Model,
Targeted Portfolio and Disciplined Execution and are reflected
in IHG’s annual and long-term incentive plans as shown below:
Governance 77
OVERVIEW STRATEGIC REPORT GOVERNANCE
GROUP FINANCIAL STATEMENTS
PARENT COMPANY FINANCIAL STATEMENTS ADDITIONAL INFORMATION