BT 2015 Annual Report Download - page 121

119
Overview
The Strategic Report
Purpose and strategy Delivering our strategy 0ur lines of business Group performance Governance
Financial statements Additional information
Comparison of Chief Executive remuneration to Total
Shareholder Return
his raph illustrates the perforance of  roup plc easured b 
relative to a broad euit aret inde over the past si ears. e consider
the 100 to be the ost appropriate inde aainst which to easure
perforance as  has been a constituent of the 100 throuhout
the si-ear period and the inde is widel used.  is the easure of the
returns that a copan has provided for its shareholders reectin share
price oveents and assuin reinvestent of dividends.
BT FTSE100
BT’s TSR performance vs the FTSE100
Source: Datastream
The graph shows the relative TSR performance
of BT and the FTSE100 over the past six years.
50
150
250
350
450
550
650
750
Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15
%
istor of hief ecutive reuneration
ear end hief ecutive
Total Rem
000
Annual bonus
of a
 vestin
of a
2015 avin atterson 1  .
01aavin atterson 901  .
an ivinston   .
01 an ivinston 90  100
2012 an ivinston 0  100
2011 an ivinston 009 9 0
2010 an ivinston  1 0
a,DQ/LYLQJVWRQVWHSSHGGRZQRQ6HSWHPEHUDQG*DYLQ3DWWHUVRQWRRNRYHUIURP
WKDW{GDWH
Percentage change in Chief Executive remuneration
(comparing 2013/14 to 2014/15)
he table below illustrates the increase in salar benefits and annual
bonus for the hief ecutive and that of a representative roup of the
copans eploees.
or these purposes we have used the UK anaeent and technical
eploee population representin around 1000 people because the
also participate in performance related pay arrangements on a similar
basis as eecutive directors.
alar enefitsbBonusc
 hane in hief ecutive reunerationa  -19
 hane in coparator roupd. 0 -1
a7KH\HDUUHSUHVHQWVWRWKHƬUVWIXOO\HDURI*DYLQ3DWWHUVRQDV&KLHI([HFXWLYH
b7KHLQFUHDVHLQEHQHƬWVIRUWKH&KLHI([HFXWLYHZDVDURXQG~
c The bonus comparator is based on cash bonus only to give a better like for like comparison.
d Comparator group is the UK management and technical employee population representing around
21,000 individuals.
Relative importance of spend on pay
he table below illustrates the chane in total reuneration and
dividends and share bu-bac paid.
Area 011  011   hane
Remuneration paid to all
employees 1 0 -.
ividendsshare bubacs 1 100 1.
Implementation of Remuneration Policy in 2015/16
Base salary
he coittee continues to position salaries towards the lower
end of aret practice for our coparator copanies. oparator
copan inforation is provided b eloitte independent adviser to
the coittee and consists of copanies of a siilar sie or aret
capitalisation andor copanies which have a siilar business i and
spread as  or operate in coparable arets.
avin atterson will receive a salar increase to 900 per annu
eective une 01 an increase of ..
on hanuas salar will increase to 000 per annu eective
une 01 representin an increase of ..
oth salaries reain positioned below id-aret in line with our polic
and were also in line with the id rane of pa awards for our anaerial
and technical specialist population.
enefits
he coittee intends to set benefits in line with the olic set out on
pae 1. here are no chanes proposed to the benefit fraewor for
011.
Pension
urrent levels of pension provision for 011 are the sae as for
011. ecutive directors receive an annual aount eual to 0
of salar in lieu of pension provision.
lawbac
lawbac provisions will be introduced for annual bonus paents
relatin to the 011 financial ear and paid in a 01 and for
 awards ade in une 01. he annual bonus clawbac will appl
for one ear followin paent. he  clawbac arraneents a
be enforced b the coittee in the two ear period post-vestin of
anawards.