Holiday Inn 2013 Annual Report Download - page 99

We set out below a statement of the implementation of the
Directors’ Remuneration Policy in 2014.
Salary: Executive Directors
Executive Director
2014
£
2014
$
2013
£
2013
$
Richard Solomons 765,000 739,000
Paul Edgecliffe-Johnson 420,000 –
Kirk Kinsell1 793,500 774,000
Tracy Robbins 437,000 424,300
1
Kirk Kinsell is paid in US dollars and his annual base salary for 2013 and2014
is shown in US dollars above. The equivalent sterling values calculated using
an exchange rate of $1=£0.64 are: 2013 – £494,635; and2014 – £507,096.
The overall budget for salary increases for IHG corporate
employees in the UK and US, and the overall increase in the
Executive Directors’ salaries for 2014 is as follows:
UK corporate employees US corporate employees Executive Directors
3.0% 3.0% 3.0%
Performance measures and targets
The performance measures and targets for the 2014 APP and
the 2014/16 LTIP cycle are the same as for the 2013 APP and the
2013/15 LTIP cycle respectively.
2014 APP
For 2014, the Committee has approved a maximum opportunity
of 200% of salary (50% cash and 50% IHG shares deferred for
three years).
Awards will be based on individual and Group achievement using
performance measures relating to:
• Guest satisfaction (Guest HeartBeat) 20%;
• Employee Engagement 10%; and
• EBIT 70%.
For Guest HeartBeat and Employee Engagement, the 2014 targets
are set as an improvement over 2013 scores. The 2014 EBIT
element relates to the 2014 EBIT target figure.
The actual targets under the performance measures for the APP
for2014 are not and will not be disclosed as they are, in the opinion
of the Directors, commercially sensitive. Disclosure would provide
IHG’s major competitors with an unfair commercial advantage as
these companies are either unlisted or listed onastock exchange
other than the London Stock Exchange, andtherefore not subject
to the same obligation to disclose incentiveplan targets.
2014/16 LTIP cycle
For the 2014/16 LTIP, the Committee has approved awards to
Executive Directors over shares with a maximum value of 205%
of salary. Share awards will vest after three years if the following
performance conditions are met:
• 25% relative net rooms growth;
• 25% relative RevPAR growth; and
• 50% relative TSR vs the DJGH index.
For net rooms and RevPAR growth, threshold performance
(20%vesting) is equal to the average of the comparator group;
and maximum performance (100% vesting) is achieved when IHG
is firstin the comparator group.
For TSR, threshold performance (20% vesting) is achieved when
growth is equal to the DJGH index and maximum performance
(100% vesting) is achieved when growth exceeds the index by
8% peryear or more.
Fees: Non-Executive Directors
The following fee levels will apply from 1 January 2014:
Non-Executive
Director Role
2014
£
2013
£
Patrick Cescau Chairman of the Board 412,000 400,000
David Kappler
Senior Independent Director
and Chairman of Audit
Committee
111,750 108,500
Luke Mayhew Chairman of Remuneration
Committee 93,750 91,000
Jennifer Laing Chairman of Corporate
Responsibility Committee 82,500 80,000
Others Non-Executive Director 70,500 68,500
David Kappler will step down as Chairman of the Audit Committee on
1 April 2014 and retire as a Non-Executive Director on 31 May 2014.
With effect from 1 April 2014, Ian Dyson will become Chairman of
the Audit Committee and his annual fee will increase to £93,750.
With effect from 31 May 2014, Dale Morrison will become Senior
Independent Non-Executive Director and his annual fee will
increase to £93,750.
Luke Mayhew, Chairman of the Remuneration Committee
17 February 2014
Governance 97
OVERVIEW STRATEGIC REPORT GOVERNANCE
GROUP FINANCIAL STATEMENTS
PARENT COMPANY FINANCIAL STATEMENTS ADDITIONAL INFORMATION
Implementation of Remuneration Policy in 2014