National Grid 2014 Annual Report Download - page 65

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Strategic Report Corporate Governance Financial Statements Additional Information
Long Term Performance
Plan continued
Purpose and link to strategy: to drive long-term performance, aligning Executive Director
incentives to keystrategic objectives and shareholder interests.
Operation Maximum levels
Performance metrics, weighting
and time period applicable
For awards granted from 2014, it is
proposedthat participants must retain
vestedshares (after any sales to pay tax)
untilthe shareholding requirement is met,
andin any event fora further two years
aftervesting.
All will be measured over a three year period.
The weightings of these measures may vary
year to year, but would always remain such
that the value growth metric would never fall
below a 25% weighting and never rise above
a75% weighting.
Between 2011 and 2013, 25% of the award
vested at threshold and 100% at stretch,
withstraight-line vesting in between.
From2014, it is proposed that only 20%
willvest at threshold.
Future policy table – Non-executive Directors (NEDs)
Fees for NEDs Purpose and link to strategy: to attract NEDs who have a broadrange of experience and skills
to oversee the implementation of our strategy.
Operation Maximum levels
Performance metrics, weighting
and time period applicable
NED fees (excluding those of the
Chairman) are set by the Executive
Committee in conjunction with the
Chairman; the Chairman’s fees are
setbythe Committee.
Fee structure:
• Chairman fee;
• basic fee, which differs for UK- and
US-based NEDs;
• committee membership fee;
• committee chair fee; and
• Senior Independent Director fee.
Fees are reviewed every year and are
benchmarked against those incompanies
of similar scale andcomplexity.
NEDs do not participate in incentive or
pension plans and, with the exception of
the Chairman, are not eligible to receive
benefits. The Chairman is covered by the
Company’s private medical and personal
accident insurance plans and receives a
fully expensed car or cash alternative to a
car, with the use ofa driver, when required.
There is no provision for termination
payments.
There are no maximum fee levels.
The benefits provided to the Chairman are
not subject to apredetermined maximum
cost, as the cost of providing these varies
from year toyear.
Not applicable.
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