National Grid 2016 Annual Report Download - page 112

3. Operating costs continued
(c) Key management compensation
2016
£m
2015
£m
2014
£m
Short-term employee benefits 910 9
Post-employment benefits 19 1
Share-based payment 44 5
14 23 15
Key management compensation relates to the Board, including the Executive Directors and Non-executive Directors for the yearspresented.
(d) Directors’ emoluments
Details of Executive Directors’ emoluments are contained in the audited part of the Remuneration Report on page 75 and those of
Non-executive Directors on page 78.
(e) Auditors’ remuneration
Auditors’ remuneration is presented below in accordance with the requirements of the Companies Act 2006 and the principal accountant fees
and services disclosure requirements of Item 16C of Form 20-F:
2016
£m
2015
£m
2014
£m
Audit fees1 payable to the parent Company’s auditors and their associates in respect of:
Audit of the parent Company’s individual and consolidated financial statements 1.3 1.3 0.9
The auditing of accounts of any associate of the Company 9.2 8 .1 9.2
Other services supplied23.6 3.3 3.2
14.1 12.7 13.3
Total other services3
Tax fees4:
Tax compliance services 0.5 0.4 0.5
Tax advisory services –0.1 0.3
All other fees5:
Other assurance services 4.3 0.1 0.1
Services relating to corporate finance transactions not covered above 1.6 – –
Other non-audit services not covered above 2.5 0.3 0.8
8.9 0.9 1.7
Total auditors’ remuneration 23.0 13.6 15.0
1. Audit fees in each year represent fees for the audit of the Company’s financial statements and regulatory reporting for the years ended 31 March 2016, 2015 and 2014, and the review
of interim financial statements for the six month periods ended 30 September 2015, 2014 and 2013 respectively.
2. Other services supplied represent fees payable for services in relation to other statutory filings or engagements that are required to be carried out by the auditors. In particular, this includes
fees for reports under section 404 of the US Public Company Accounting Reform and Investor Protection Act of 2002 (Sarbanes-Oxley) and audit reports on regulatory returns.
3. There were no audit related fees as described in Item 16C(b) of Form 20-F.
4. Tax fees include amounts charged for tax compliance, tax advice and tax planning.
5. All other fees include amounts incurred in respect of the potential disposal of a majority stake in the Gas Distribution business (vendor due diligence and separation support), as well
as data assurance work in respect of financial information included in US rate filings all of which have been subject to approval by the Audit Committee. Total other fees for the year ended
31 March 2016 were £8.4m (2015: £0.4m; 2014: £0.9m).
PwC has contracted with Ofgem to assess the UK gas industry’s readiness for the introduction of new settlement processes and systems.
Fees for these services are paid by Xoserve Limited, a subsidiary of National Grid, on behalf of the industry, under instruction from Ofgem.
AsPwC has no contract with or duty of care to Xoserve Limited, these amounts are not included above.
In addition, fees of £0.1m were incurred in 2016 in relation to the audits of the pension schemes of the Company (2015: £0.2m; 2014: £0.1m).
Subject to the Company’s Articles of Association and the Companies Act 2006, the Audit Committee is solely and directly responsible
for theapproval of the appointment, reappointment, compensation and oversight of the Company’s independent auditors. It is our policy
that theAudit Committee must approve in advance all non-audit work in excess of £50,000 to be performed by the independent auditors
to ensurethat the service will not compromise auditor independence. The Audit Committee has delegated the approval in advance for
all non-audit work below this level, up to a maximum of 5% of the total audit fee, to the Finance Director. Certain services are prohibited
from being performed by the external auditors under Sarbanes-Oxley. All of the above services were pre-approved pursuant to this policy.
Notes to the consolidated financial statements
– analysis of items in the primary statements continued
110 National Grid Annual Report and Accounts 2015/16 Financial Statements