BT 2012 Annual Report Download - page 86

Governance
Executive share ownership
The Committee believes that the interests of the executive directors
should be closely aligned with those of shareholders. The deferred
shares and incentive shares provide considerable alignment. The
directors are encouraged to build up a shareholding in the company
over time by retaining shares which they have received under an
executive share plan (other than shares sold to meet a National
Insurance contribution or income tax liability) or from a purchase in the
market. The Chief Executive is required to build up a shareholding of 2x
salary and the remaining executive directors 1.5x salary.
Current shareholdings are set out below.
Directors’ interests
The interests of directors holding office at the end of the year, and their
families, in the company’s shares at 31 March 2012 and 1 April 2011, or
at date of appointment if later, are shown below:
Number of shares
Beneficial holdings 2012 2011
Sir Michael Rake 116,430 109,710
I Livingstona1,270,335 1,155,545
T Chanmugama251,149 224,416
G Pattersona486,986 439,473
T Ball 15,000 15,000
J E Daniels 12,647 12,647
P Hewitt 18,234 12,391
P Hodkinson 22,857 16,683
N Rose 50,000 50,000
K Richardsonb––
J Whitbread 2,940 640
Total 2,246,578 2,036,505
a Includes free shares awarded under the ESIP.
b Karen Richardson joined the Board on 1 November 2011.
During the period from 1 April 2012 to 9 May 2012, there were no
movements in directors’ beneficial holdings.
The directors, as a group, beneficially own less than 1% of the
company’s shares.
Reports of the Board Committees
Total Shareholder Return
This graph illustrates, as required by the Large and Medium-sized
Companies and Groups (Accounts and Reports) Regulations 2008,
the performance of BT Group plc measured by TSR relative to a
broad equity market index over the past five years. We consider the
FTSE100 to be the most appropriate index against which to measure
performance for these purposes, as BT has been a constituent of the
FTSE100 throughout the five-year period, and the index is widely
used. TSR is themeasure of the returns that a company has provided
for its shareholders, reflecting share price movements and assuming
reinvestment of dividends.
120
100
80
40
60
0
20
2009 2010 2011 201220082007
BT’s TSR performance vs the FTSE100
Source: Datastream
The graph shows the relative TSR performance
of BT and the FTSE100 over the past five years
BT
FTSE100
31 March 2007= 100
Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information