National Grid 2014 Annual Report Download - page 62

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Remuneration
Report
continued
Future policy table – Executive Directors
Salary Purpose and link to strategy: to attract, motivateand retain high-calibre individuals,
while not overpaying.
Operation Maximum levels
Performance metrics, weighting
and time period applicable
Salaries are targeted broadly at mid-market
level.
They are generally reviewed annually. Salary
reviews take intoaccount:
• business and individual contribution;
• the individual’s skills and experience;
• scope of the role, including any changes
inresponsibility; and
• market data in the relevant
comparator group.
No prescribed maximum annual increase.
Any increases are generally aligned to salary
increases received by other Company
employees and tomarket movement.
Increases in excess of this may be made at
the Committee’s discretion in circumstances
such as a significant change in responsibility;
progression in the role; and alignment to
marketlevel.
Not applicable.
Benefits Purpose and link to strategy: to provide competitive and cost-effective benefits to attract
and retain high-calibre individuals.
Operation Maximum levels
Performance metrics, weighting
and time period applicable
Benefits provided include:
• company car or a cash alternative (UKonly);
• use of a driver when required;
• private medical insurance;
• life assurance;
• personal accident insurance;
• opportunity to purchase additional benefits
under flexible benefits schemes available
toall employees; and
• opportunity to participate in the following
HM Revenue & Customs (UK) or Internal
Revenue Service (US) tax advantaged
all-employee shareplans:
Sharesave: UK employees may make
monthly contributions from net salary for
aperiod of 3 or 5 years. The savings can
beused to purchase shares at a discounted
price, setat the launch of each plan period.
Share Incentive Plan (SIP): UK employees
may use gross salary topurchase shares.
These shares are placed in trust.
Incentive Thrift Plans (401(k) plans):
USemployees may participate inthese
tax-advantaged savings plans. They are
DCpension plans in which employees
caninvest their own and Company
contributions.
Employee Stock Purchase Plan (ESPP)
(423(b) plan): eligible US employees may
purchase ADSs on amonthly basis at
adiscounted price.
Other benefits may be offered at the
discretion of the Committee.
Benefits have no pre-determined maximum,
asthe cost of providing these varies from year
toyear.
Participation in tax approved all-employee
share plans is subject to limits set by the
relevant tax authorities from time to time.
Not applicable.
60 National Grid Annual Report and Accounts 2013/14