National Grid 2014 Annual Report Download - page 29

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Strategic Report Corporate Governance Financial Statements Additional Information
Long Term Performance Plan (LTPP)
Our LTPP aims to drive long-term performance, aligning Executive Director incentives to key strategic
objectives and shareholder interests. Performance measures set are considered to either drive or measure
long-term value within the business, aligning executive reward with long-term sustainable performance.
The table below shows the performance measures and the relative weightings of these that were included
within the LTPP awards made to the Executive Directors during 2013/14:
Performance measure Weighting Definitions and performance period
Adjusted earnings
per share (EPS)
50% Threshold performance – where EPS growth exceeds RPI
growth by three percentage points
Stretch performance – where EPS growth exceeds RPI
growth by eight percentage points or more
Performance period – three years
Relative total
shareholder return
(TSR)
25% Threshold performance – where TSR is at the median of the
FTSE 100
Stretch performance – where TSR performance is 7.5
percentage points or more above that of the median of the
FTSE 100
Performance period – three years
UK and US RoE 25% Threshold performance – where allowed regulatory returns
are achieved (UK) or under-performed by one percentage
point (US)
Stretch performance – where allowed regulatory returns are
out-performed by at least two percentage points (UK) or at
least one percentage point (US)
Performance period – four years
If the Remuneration Committee considers the underlying performance of the Company does not justify the
vesting of LTPP awards, even if some or all of the performance measures are satisfied in whole or in part,
itcan declare that some or all of the awards lapse.
For full details about our remuneration policy and how it is implemented, please see the Remuneration
Report on pages 58 to 73.
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