BT 2015 Annual Report Download - page 127

Overview
The Strategic Report
Purpose and strategy Delivering our strategy 0ur lines of business Group performance Governance
Financial statements Additional information
125
Executive Directors and Chairman
Policy Element Operation and Opportunity Performance measures or basis of payment
Base salary
urpose 
acoreeleent of
reuneration used
to attract and retain
eecutive directors
of the calibre
reuired to develop
and deliver our
business strate.
alaries for the eecutive directors and the hairan are reviewed
annuall althouh an out-of-ccle review a be conducted if the
coittee deterines it appropriate.  review a not necessaril
lead to an increase in salar. alaries are paid onthl in cash.
he pa and conditions for all UK eploees are considered when
settin salaries for eecutive directors and the hairan.
hilst there is no aiu salar level an
increase will tpicall be broadl in line with s
UK eploee population.
or the eecutive directors hiher increases a
be ade under certain circustances such as
 increase in the scope andor responsibilit of
the individuals role
 developent of the individual within their
role and
 where an eecutive director has been
appointed to the oard at a lower than tpical
level of salar for eaple to reect less
eperience larer increases a be awarded
to ove the closer to aret practice as their
eperience develops.
ndividual and business perforance are taen
into account in decidin salar levels.
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urpose 
tosupport health
and wellbein and
provide eploees
with a aret
copetitive level
ofbenefits.
ecutive directors and the hairan receive benefits which tpicall
include but are not liited to copan car or onthl allowance
in lieu of a car or part of such allowance not used for a car fuel and
or driver personal telecounication facilities and hoe securit
edical and dental cover for the directors and their iediate fail
special life cover professional subscriptions personal ta advice and
financial counsellin up to a aiu of 000 ecludin 
aear.
here eecutive directors are reuired to relocate the coittee
a oer additional epatriate benefits if considered appropriate.
he copan purchases directors and ocers liabilit insurance
to cover the directors and has in place a directors and ocers
indenit. he insurance operates to protect the directors in
circustances where b law  cannot provide the indenit.
urther details of the directors and ocers liabilit insurance
and indenit are set out on pae 11.
hile no aiu level of benefits is prescribed
the are enerall set at an appropriate aret
copetitive level deterined b the coittee
tain into account a nuber of factors includin
 the urisdiction in which the eploee is based
 the level of benefits provided for other
eploees within the roup and
 aret practice for coparable roles
within appropriate pa coparators in that
urisdiction.
he coittee eeps the benefit polic and
benefit levels under reular review.
Annual bonus
urpose 
toincentivise and
reward deliver of
our business plan
onan annual basis.
ecutive directors are eliible for an annual bonus. he hairan is
not eliible for an annual bonus. wards are based on perforance
in the relevant financial ear. he annual bonus is paid in two
eleents a cash eleent and a deferred eleent awarded in
shares.nnualbonus aounts are not pensionable.
he coittee sets annual bonus perforance tarets each ear
tain into account e strateic priorities and the approved budet
for the ear.
he coittee ensures that tarets set are appropriatel stretchin
in the contet of the corporate plan and that there is an appropriate
balance between incentivisin eecutive directors to eet tarets
while ensurin that the do not drive unacceptable levels of ris or
drive inappropriate behaviours.
t least one-third of the annual bonus will be ranted in the for of
deferred shares to strenthen further the alinent of anaeent
interests with the lon-ter interests of shareholders. he deferred
eleent in shares ust be held for a deferral period which will not
be less than three ears. dditional shares a be accrued in lieu of
dividends and awarded on an shares which vest. f followin the rant
of an award facts subseuentl becoe nown to the coittee which
would ustif a reduction in the award the coittee a reduce the
nuber of deferred shares includin to nil. urther inforation on the
alus provisions are set out on pae 109.
he aiu annual bonus opportunit is 0 of base salar.
he coittee sees to eectivel reward
perforance aainst the e eleents of our
strate. easures used tpicall include but are
not liitedto
 financial perforance easures  these are
chosen carefull to ensure alinent between
reward and underlin financial perforance.
s an eaple such easures a include free
cash ow and earnins pershareand
 non-financial perforance easures  these
reect e copan strateic and individual
oals. or eaple such easures a include
custoer service purposeful copan and
personal obectives.
n ters of weihtin non-financial easures
will tpicall account for no ore than 0 of
the total annual bonus.
 slidin scale between 0 and 100 of
the aiu award applies for achieveent
between threshold and aiu perforance
under the bonusplan.