Holiday Inn 2013 Annual Report Download - page 82

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Future policy table continued
How the element supports
our strategic objectives Operation Maximum opportunity
Performance
framework
Pension
Provides funding
for retirement.
Helps recruit
andretain.
The following plans are operated:
• for UK executives, the executive defined
contribution section of the InterContinental
Hotels UK Pension Plan (IC Plan);
• for UK executives, the InterContinental
Executive Top-Up Scheme (ICETUS);
• for US executives, a DC 401(k) Plan
(US 401(k) Plan) and a DC Deferred
Compensation Plan (US Deferred
Compensation Plan); and
• for non-UK and non-US executives, the
InterContinental Hotels Group International
Savings and Retirement Plan, and other
local plans.
A cash allowance in lieu of pension contributions
is offered.
Until 30 June 2013, IHG operated an executive
defined benefit section of the IC Plan in which
Richard Solomons participated. This closed
to future accruals for existing members from
1 July 2013.
Under the phasing out of Enhanced Early
Retirement Facility, Richard Solomons could
now retire with no reduction to his pension
from approximately age 58 and no earlier.
Retirement before age 58 is allowed under the
facility but abatement to the pension will apply.
This provision only applies on the consent of
the Company.
Salary is the only element of remuneration
that is pensionable.
Current contribution levels are as follows:
• executive defined contribution section of
the IC Plan and ICETUS: 7.5% employee
contribution with 30% matching
Companycontribution;
• US 401(k) Plan: 2%-75% employee
contribution with 4% matching
Companycontribution; and
• US Deferred Compensation Plan: up to 75%
employee contribution with 2% matching
Company contribution and 8%-20%
additional Company contribution if certain
conditions are met.
These may be increased by the Committee
in exceptional circumstances where market
conditions so warrant.
None.
Benefits
Market competitive,
consistent with
role/location.
Helps recruit
andretain.
IHG pays the cost of providing the benefits
ona monthly basis or as required for
one-off events.
The value of benefits is dependent on
location and market factors.
Benefits may include the cost of independent
financial advice, car allowance/company car,
private healthcare/medical assessments
and other benefits provided from time to
time. Benefits would be restricted to the
typical level in the relevant market for an
Executive Director.
Benefits may also include relocation and
expatriate or international assignment costs
where appropriate, including for example:
• cost of living allowance;
• travel costs;
• housing allowance;
• professional advice;
• education allowances;
• tax equalisation;
• medical expenses; and
• relocation allowance.
Relocation and expatriate or international
assignment costs would be restricted to the
typical level in the relevant market for an
Executive Director.
None.
80 IHG Annual Report and Form 20-F 2013
Directors’ Remuneration Report continued
Directors’ Remuneration Policy continued