Holiday Inn 2015 Annual Report Download - page 74

Directors’ Remuneration Report continued
Audited
This Annual Report on Directors’ Remuneration explains how the Directors’
Remuneration Policy (DR Policy) was implemented in 2015 and the resulting payments
each of the Directors received. This report is subject to an advisory vote by shareholders
at the 2016 AGM. The notes to the single-figure table provide further detail, where
relevant, for each of the elements that make up the total single figure of remuneration
in respect of each of the Executive Directors.
Annual Report on Directors’ Remuneration
Single total figure of remuneration – Executive Directors
Fixed pay Variable pay
Salary Benefits Pension benefit APP LTIP Total
Executive Directors 2015
£000
2014
£000
2015
£000
2014
£000
2015
£000
2014
£000
2015
£000
2014
£000
2013/15
cycle
(value of
shares)
£000
2012/14
cycle
(value of
shares)
£000
2015
£000
2014
£000
Richard Solomons 785 759 31 30 236 3,186 1,187 1,128 960 1,508 3,199 6,611
Paul Edgecliffe-Johnson 450 420 23 28 135 126 690 619 349 426 1,647 1,619
Kirk Kinsell 64 479 16 27 30 111 0365 463 996 573 1,978
Tracy Robbins 445 434 30 20 134 130 672 644 551 862 1,832 2,090
Fixed pay
Salary: salary paid for the year. Kirk Kinsell was paid in US
dollars. The figure shown is the actual amount earned for the
portion of the year Mr Kinsell remained employed until he left
IHG on 13 February 2015. Sterling equivalents were calculated
using an exchange rate of $1=£0.65.
Benefits: for Executive Directors, this includes, but is not limited
to, taxable benefits such as company car, healthcare and life
cover. Provision during 2015 was in line with previous years
and the approved DR Policy. No extraordinary payments
were made.
Pensions
Pension benefit: for current Executive Directors, in line with
DR Policy, the value of IHG contributions to pension plans and
any cash allowances, equalling 30% of salary, paid in lieu of
pension contributions.
• The 2014 figure for Richard Solomons included an amount of
£2.958m in respect of a one-off cash payment relating to pension
entitlements and was fully explained in the 2014 report.
• Richard Solomons did not participate in any IHG pension plan
in 2015 and instead received a cash allowance of 30% of salary
equal to £235,575. Mr Solomons also received life assurance
cover of six times salary.
• Neither Paul Edgecliffe-Johnson nor Tracy Robbins participated
in any IHG pension plan in 2015 and instead they both received a
cash allowance of 30% of salary equal to £135,000 and £133,575
respectively. They both also received life assurance cover
of four times pensionable salary.
• Kirk Kinsell participated in the US 401(k) Plan and the US
Deferred Compensation Plan. The US 401(k) Plan is a tax
qualified plan providing benefits on a defined contribution
basis, with the member and relevant company both contributing.
The US Deferred Compensation Plan is a non-tax qualified plan,
providing benefits on a defined contribution basis, with the
member and the relevant company both contributing.
Contributions made by, and in respect of, Kirk Kinsell in these
plans, up to his date of leaving on 13 February 2015, were:
£a
Director’s contributions to US Deferred Compensation Plan 1,389
Director’s contributions to US 401(k) Plan 6,943
Company’s contributions to US Deferred Compensation Plan 27,177
Company’s contributions to US 401(k) Plan 2,777
Age at 31 December 2015 60
a Sterling values have been calculated using an exchange rate of $1=£0.65.
Variable Pay
2015 APP (cash and deferred shares)
Operation
Award levels were determined based on salary as at 31 December
2015 on a straight-line basis between threshold and target, and
target and maximum, and are based on achievement vs target under
each measure:
• Threshold is the minimum level that must be achieved for there
to be an award in relation to that measure; for achievement
below this, no award is made (57.5% of salary).
• Target is the target level of achievement and results in a target
award for that measure (115% of salary).
• Maximum is the level of achievement at which a maximum award
for that measure is received (200% of salary).
Notes to single total figure of remuneration – Executive Directors
72 IHG Annual Report and Form 20-F 2015