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Remuneration
Report
continued
Total remuneration opportunity
The total remuneration for each of the Executive Directors that could result from the remuneration policy in 2014 under three
different performance levels – below threshold (when only fixed pay is receivable), on target and maximum – is shown below.
Andrew Bonfield
£’000
100%
43%
18%
39%
54%
£1,000
£2,549
£4,098
22%
24%
Fixed pay On target Maximum
Fixed pay APP LTPP
Tom King
£’000
100%
32%
13%
55%
44%
£1,865
£3,420
£4,975
18%
38%
Fixed pay On target Maximum
Fixed pay APP LTPP
Steve Holliday
£’000
Fixed pay On target Maximum
100%
46%
16%
38%
57%
£1,474
£3,906
£6,337
20%
23%
Fixed pay APP LTPP
John Pettigrew
£’000
100%
39%
16%
45%
50%
£813
£1,823
£2,832
21%
29%
Fixed pay On target Maximum
Fixed pay APP LTPP
1. ‘Fixed pay’ consists of salary, pension and benefits in kind as provided under the remuneration policy.
2. Salary is that to be paid in 2014/15, taking account of the increases that will be effective from 1 June 2014 shown on page 72.
3. Benefits in kind and pension are as shown in the single total figure of remuneration table for 2013/14 on page 67, except for John Pettigrew. For John, benefits in kind
areassumedtobe£18,300 and pension is assumed to be £320,000.
4. APP calculations are based on 125% of salary for the period 1 April 2014 to 31 March 2015.
5. LTPP calculations are based on awards with a face value of 350% of 1 June 2014 salary for Steve Holliday and 300% of 1 June 2014 salary for all other Executive Directors.
6. LTPP and APP payout is 50% for on target performance and the maximum is 100% for achieving stretch performance.
7. Tom King’s remuneration opportunity has been converted at $1.62:£1.
Statement of consideration of shareholder views
The Committee considers all feedback received from shareholders throughout the year. While the Committee understands that
not all shareholders’ views will be the same, we consult with our larger shareholders on a regular basis to understand their
expectations with regard to executive remuneration issues and any changes in shareholder views in this regard. In 2013/14 larger
shareholders were consulted on the proposed changes to remuneration policy. Shareholders were supportive of the direction
of change proposed, particularly increasing holding periods for awards and retention thresholds. Several responses suggested
a number of small changes and where possible the Committee has reflected these changes in the proposals.
66 National Grid Annual Report and Accounts 2013/14