BT 2015 Annual Report Download - page 126

124 BT Group plc
Annual Report 2015
Remuneration Principles
ur reuneration principles are to aintain a copetitive reuneration
pacae that will attract retain and otivate a hih ualit top tea
avoid ecessive or inappropriate ris tain and alin their interests
withthose of shareholders.
e believe in pa for perforance aainst challenin tarets and
stretchin oals for the annual bonus includin deferred shares
and lon-ter incentive shares. ur approach is to set base salaries
below the edian for our coparator roup.  sinificant proportion
of the total reuneration pacae is therefore variable and lined to
corporateperforance.
he coittee deterines the reuneration polic for the eecutive
directors and the hairan. he hairan is not a eber of
thecoittee.
he coittee reviews the perforance tarets reularl to ensure
that the are both challenin and closel lined to the roups strateic
priorities. urtherore because a lare part of the reuneration
pacae is delivered in shares and senior eecutives are reuired to build
up a sinificant shareholdin theselves the are directl eposed to
the sae ains or losses as all other shareholders.
arets for perforance are established at above consensus aret
epectation at the tie the are set.
n settin directors reuneration the coittee taes account of the
reuneration of other copanies of siilar sie and copleit usin
a coparator roup defined with the assistance of our independent
reuneration consultants eloitte. he coittee also taes into
account the pa and eploent conditions of all our eploees.
he coittee continues to eep under review the relationship of ris
to reuneration. he hair of the
udit  is oittee is a member
of the
euneration oittee . he udit  is oittee and
oinatin  overnance oittee held a oint session durin the
ear to cover areas of coon interest to both coittees.
he coittee is also satisfied that the incentive structure for senior
eecutives does not raise environental social or overnance riss b
inadvertentl otivatin irresponsible behaviour. art of the annual
bonus depends upon an assessent of each senior eecutives personal
contribution and includes the results of the reular eploee surves
and health and safet outcoes. dherence to these easures is a basic
criterion epected of all eecutives.
he coittee retains absolute discretion to reduce variable
copensation in liht of ris and the roups overall perforance.
e would onl use this in eceptional circustances.
Remuneration policy
he followin paes set out our irectors reuneration polic the
olic which was approved b shareholders at the  on 1 ul
01 in accordance with section 9 of the opanies ct 00.
he olic on paes 1 to 19 is a repeat of the olic set out in the
nnual eport  or 0- 01 on paes 10 to 110. he pae
cross references within the repeated olic are to the respective paes
in the nnual eport  or 0- 01. he olic as approved is also
available online at www.bt.codownloadcentre
e are repeatin the olic this ear because we thin that it is helpful
when readin the nnual euneration eport.
Legacy matters
he coittee a ae reuneration paents and paents for loss
of oce outside of the olic below where the ters of the paent
were areed before the olic cae into eect or at a tie when
the relevant individual was not an eecutive director of the copan
provided that in the opinion of the coittee the paent was not in
consideration for the individual becoin an eecutive director of the
copan. his includes the eercise of an discretion available to the
coittee in connection with such paents. n leac paents will
be disclosed in the nnual euneration eport for the relevant ear.
Minor amendments
he coittee a ae inor aendents to the arraneents
for the directors as described in the olic for reulator echane
control ta or adinistrative purposes or to tae account of a chane
in leislation. Under this power the coittee will introduce clawbac
provisions for annual bonus paents relatin to 011 and 
awards ade in 011 and in future ears in certain circustances
durin the two ears post vestin.