Holiday Inn 2013 Annual Report Download - page 80

Future policy table
How the element supports
our strategic objectives Operation
Salary
(100% 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.
The Committee considers:
• business 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.
Annual Performance Plan (APP)1
(50% cash and 50% IHG shares
deferred for three years)
Drives and rewards annual
performanceagainst both financial
andnon-financial metrics.
Aligns individuals and teams with
key strategic priorities.
Aligns short-term annual performance
with strategy to generate long-term
returns to shareholders.
Reviewed annually with targets set in line with key strategic priorities.
Includes facility to use regional or global measures or a combination thereof.
Awards are made annually, 50% in cash after the end of the relevant financial year and 50%
in the form of IHG share awards which vest after three years subject to leaver provisions.
The Committee has discretion to make awards wholly in cash rather than part-cash and
part-shares.
The share awards are made in the form of conditional awards or forfeitable shares, the latter
having the right to receive dividends and vote at general meetings.
Malus applies to awards. See page 82 for details.
Executive Directors are expected to hold all shares earned (net of any shares sales required
to meet personal tax liabilities), until the guideline shareholding requirement is achieved
(300% of salary for the Chief Executive Officer and 200% for other Executive Directors).
See page 94 for details.
Long Term Incentive Plan (LTIP)
(100% shares)
Drives and rewards delivery of
sustained long-term performance
on measures thatare aligned with
the interests ofshareholders.
Annual conditional awards of IHG shares, or options over IHG shares, which vest after
a period of three years, or such longer period as the Committee determines, subject to
the achievement of corporate performance targets.
The Committee may also impose such post-vesting holding periods as it may, at its
discretion,determine.
The Committee also has discretion to make awards in cash rather than shares.
Malus applies to awards. See page 82 for details.
Executive Directors are expected to hold all shares earned (net of any shares sales required
to meet personal tax liabilities), until the guideline shareholding requirement is achieved
(300% of salary for the Chief Executive Officer and 200% for other Executive Directors).
See page 94 for details.
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The term Annual Performance Plan includes cash and deferred IHG share awards granted to Executive Directors and other senior employees
under the rules of the IHG Annual Bonus Plan for financial years 2012 and 2013.
The policy for Executive Directors, set out below, will apply from the date of the 2014 AGM (subject to approval), and is available to view
at www.ihgplc.com/investors.
The Committee will consider the remuneration policy annually to ensure it remains aligned with strategic objectives. However, it is
intended that the policy set out below will apply for three years from the 2014 AGM; if any amendments need to be made to the policy
within that timeframe, it will first be presented to be voted upon by shareholders.
78 IHG Annual Report and Form 20-F 2013
Directors’ Remuneration Report continued
Directors’ Remuneration Policy