BT 2015 Annual Report Download - page 128

126 BT Group plc
Annual Report 2015
Incentive Share
Plan (ISP)
urpose  to
incentivise eecutive
directors over the
loner-ter b
rewardin deliver
of stretchin
tarets lined to our
strategy and long-
ter value creation.
ecutive directors are eliible to participate in the .
he hairan is not eliible to participate. he 
fors the lon-ter variable eleent of eecutive
reuneration. wards are discretionar and norall
vest subect to perforance easured over a three-
earperiod.
Under the ters of the plan rules the current  has no
aiu award level. he coittee have deterined
that it will ipose liits for eecutive directors to appl
to future awards. he aiu noral  award that
a be awarded to an eecutive director in respect of an
financial ear of the copan will be 00 of basic salar.
n eceptional circustances for eaple recruitent
this liit a be increased to 00 of basic salar.
he proposed award levels for 011 are set out on
page 101.
here shares vest additional shares representin the value
of reinvested dividends are added. n respect of  awards
ade to eecutive directors in une 01 and future
ears there will be a further holdin period of two ears
coencin fro the end of the three-ear perforance
period applicable to the net nuber of shares received
after ta and other statutor deductions. urinthe
holdin period no further perforance easures will
appl as perforance will alread have been assessed.
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 shares includin to nil. urther inforation
on the alus provisions are set out on pae 109.
he coittee alins the perforance easures under
the  with the lon-ter strate of the copan and
considers that stron perforance under the chosen
easures should result in sustainable value creation
 financial easures  to reect the financial perforance
of our business and a direct and focused measure of
copan success and for eaple a include free
cash ow and revenue easures. e set tarets to be
appropriatel stretchin with reard to a nuber of
internal and eternal reference points includin our
business plan and consensus aret epectations and
 share price perforance easures to reect the
ultiate deliver of shareholder returns which a for
eaple include . his prootes alinent between
eecutive director reward and shareholder value creation.
arets are set with reference to wider aret practice
and positioned at a level which we consider represents
stretchin perforance. arets will be easured aainst
a coparator roup containin other telecounication
copanies andor copanies which are either siilar in sie
or aret capitalisation andor have a siilar business i
and spread as  or operate in coparable arets.
n ters of weihtin share price perforance easures will
tpicall account for no ore than 0 of the total award.
Under each perforance easure perforance below
threshold levels would result in nil vestin for that eleent.
or threshold levels of perforance no ore than 
of the aiu for that eleent would tpicall vest
risin to 100 for aiu perforance.
f an event or transaction occurs which causes the coittee
to conclude a taret is no loner appropriate the coittee
can aend that taret in a anner which is reasonable in the
circustances provided that the new taret produces a fairer
easure of perforance and is not ateriall less dicult
to satisf.
Pension
urpose  to attract
and retain eecutive
directors of the riht
calibre b providin
aret copetitive
post-retirement
incoe.
ecutive directors currentl receive a cash allowance in
lieu of pension.
he coittee a deterine that alternative pension
provisions will operate for new appointents to the
oard. hen deterinin pension arraneents for
newappointents the coittee will ive reard to
 the cost of the arraneents
 pension arraneents received elsewhere in the
roupand
 relevant aret practice.
he hairan does not receive a pension benefit or
paent in lieu of such benefit but does receive a
lupsu death in service benefit of 1.
or eecutive directors the aiu cash allowance
or euivalent contribution to an eecutive directors
pension a not eceed 0 of salar.
ecutive directors who are not ebers of the ension
chee benefit fro a death in service cover of a lup
su of  salar and a dependants pension of 0 of
capped salar.
6DYH$V<RX(DUQ
Scheme
(saveshare)
urpose  to
encourage employee
share ownership.
ecutive directors and the hairan a participate
in the saveshare  approved savins related share
option plan on the sae basis as other eliible eploees.
ll participants a invest up to the liits operated b the
copan at the tie. here are no perforance easures
attached to these awards.
ESIP
(directshare)
urpose  to
encourage employee
share ownership.
ecutive directors and the hairan a participate in
the irectshare  approved purchase of shares fro
ross salar on the sae basis as other eliible eploees.
ll participants a invest up to the liits operated b the
copan at the tie. here are no perforance easures
attached to these awards.
Notes to the policy table
1. For further information on the performance measures applicable to the annual bonus and ISP see
page 101.
1RSHUIRUPDQFHPHDVXUHVDUHDSSOLFDEOHWRVDODU\EHQHƬWVSHQVLRQ%7VDYHVKDUHDQG%7
directshare in line with market practice.