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Awards Made Prior to 2004 Awards Made for 2004 Forward
Comparator Group A weighting of 75% is applied to
the UKT companies in the
Comparator Group, and 25% to
the non-UK based companies.
The Comparator Group has been
simplified and amended to include
companies more relevant to the
Company, and there will be no
weighting as between UK and
non-UK companies.
(1) For cycles beginning in 2004 and 2005, threshold vesting was 40% of the award, and performance ranges for the
growth in UEPS was expressed in post-inflation terms.
The TSR measure is a widely accepted and understood benchmark of a company’s performance. It is measured
according to the return index calculated by Thomson Financial on the basis that a company’s dividends are invested
in the shares of that company. The return is the percentage increase in each company’s index over the performance
period. UEPS is a key indicator of corporate performance. It is measured on an absolute basis (real prior to 2006
after allowing for inflation). Sustained performance is therefore required over the performance cycle as each year
counts in the calculation.
The “Comparator Group” was selected to reflect the global nature of Cadbury’s business.
Awards under the LTIP (both before and after 2004) vest in full following a change in control in Cadbury
Schweppes, but only to the extent that performance targets have been met at the time of the change in control unless
Cadbury decides that the awards would have vested to a greater or lesser extent had the performance targets been
measured over the normal period.
The maximum number of shares issued under this plan, to all Cadbury Schweppes employees, was 3 million in
each of 2007 and 2006. Awards made under this plan were classified as either equity, for those with TSR vesting
conditions, or liabilities, for those with UEPS vesting conditions. The expense recognized by the Company in
respect of these awards was less than $1 million in 2008 and $1 million for each of 2007 and 2006.
Bonus Share Retention Plan
The BSRP enabled participants to invest all or part of their Annual Incentive Plan (“AIP”) award in Cadbury
Schweppes shares (“Deferred Shares”) and earn a match of additional shares after three years. During the three year
period, the shares are held in trust. If a participant left Cadbury during the three-year period, they forfeited some of
the additional shares, and in certain cases, it was possible that all of the Deferred Shares and the additional shares
were forfeited.
The number of matching shares that will be provided for grants from 2006 is as follows:
Absolute Compound Annual Growth in Aggregate
Underlying Economic Profit (‘‘UEP”) Over the Three
Year Deferral Period Equivalent to
Percentage of Matching Shares
Awarded at the End of the Period
Below 4% . . . .......................................... 40%(Threshold)
4%.................................................. 40%
8%.................................................. 70%
12% or more . .......................................... 100% (Maximum)
There was a straight line sliding scale between these percentages. UEP was measured on an aggregate absolute
growth basis, the levels of growth required to achieve the highest levels of share match being demanding. For
awards made before 2006, UEP performance was measured on a real basis, with a stepped vesting scale between the
threshold and maximum. Awards under the BSRP vest in full following a change in control in Cadbury Schweppes
but only to the extent that performance targets have been met at the time of the change in control unless Cadbury
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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)