BT 2015 Annual Report Download - page 129

Overview
The Strategic Report
Purpose and strategy Delivering our strategy 0ur lines of business Group performance Governance
Financial statements Additional information
127
Remuneration arrangements throughout the company
 operates in a nuber of dierent environents and has an
eploees who carr out diverse obs across a nuber of countries
 all eploees includin directors are paid b reference to the
aret rate
 perforance for anaers is easured and rewarded throuh a
nuber of perforance-related bonus schees across the roup
 business unit perforance easures are cascaded down throuh
the oranisation
  oers eploent conditions that reect our values and are
coensurate with a lare publicl listed copan includin hih
standards of health and safet and eual opportunities
  operates all eploee share plans in an countries. hese are
open to all eploees where oered and
  oers a rane of eploee benefits an of which are available
to everone.
Recruitment
ur recruitent polic is based on a nuber of e principles
 we ai to provide a reuneration pacae which is sucient to
attract retain and otivate e talent while at all ties ensurin
that we pa no ore than is necessar with due reard to the best
interests of the copan and our shareholders
 the coittee will tae a nuber of factors into account in
deterinin the appropriate reuneration pacae. or eaple
these a tpicall include the candidates eperience and calibre
their circustances eternal aret inuences and arraneents
for eistin eecutive directors
 the onoin reuneration pacae oered to new directors will onl
include those eleents listed within the polic table
 the coittee a also consider providin additional benefits to
epatriate appointents where appropriate and
 the coittee will provide full details of the recruitent pacae for
new eecutive directors in the net nnual eport on euneration
and will provide shareholders with the rationale for the decisions that
were taen.
he aiu level of variable pa ecludin buouts for which see
below which a be awarded in respect of a recruitent event internal
or eternal will not eceed 0 of base salar representin the
current aiu award under the annual bonus and .
n addition to facilitate recruitent the coittee a ae a one-o
award to bu-out variable incentives which the individual would forfeit
at their current eploer. he coittee will ive consideration to an
relevant factors tpicall includin the for of the award e cash or
shares the proportion of the perforancevestin period outstandin
and the potential value of the forfeited reuneration includin
perforance conditions attached to the awards the lielihood of those
conditions bein et and the tiin of an potential paents.
n ain buin-out awards the coittee a use the relevant
provision in the inancial onduct uthorit istin ules. his
allows for the rantin of awards specificall to facilitate in unusual
circustances the recruitent of an eecutive director without seein
prior shareholder approval. n doin so the coittee will copl with
the relevant provisions in force at the date of this report.
here an eecutive director is appointed fro within the oranisation
the copan will honour leac arraneents in line with the oriinal
ters and conditions.
n the event of the appointent of a new non-eecutive director
reuneration arraneents will be in line with those detailed on
pae10.
3D\PHQWIRUORVVRIRƯFH
n a departure event the coittee will tpicall consider
 whether an eleent of annual bonus should be paid for the financial
ear. n bonus paid will be liited to the period served durin the
financial ear in which the departure occurs
 whether an of the share eleent of deferred bonus awarded in prior
ears should be preserved either in full or in part
 whether an awards under the  should be preserved either in full
or in part and if relevant whether the post vestin holdin period
shouldappl.
he coittee has historicall aintained a discretionar approach to
the treatent of leavers on the basis that the facts and circustances
of each case are uniue.
n an eit situation the coittee will consider the individual
circustances an itiatin factors that iht be relevant the
appropriate statutor and contractual position and the reuireents
of the business for speed of chane.
he default position is that an unvested  or  award or entitleent
lapses on cessation of eploent unless the coittee applies
discretion to preserve soe or all of the awards. his provides the
coittee with the aiu eibilit to review the facts and
circustances of each case allowin dierentiation between ood
and bad leavers and avoidin paent for failure.
hen considerin a departure event there are a nuber of factors
which the coittee taes into account in deterinin appropriate
treatent for outstandin incentive awards. hese include
 the position under the relevant plan docuentation
 the individual circustances of the departure
 the perforance of the copanindividual durin the ear
to dateand
 the nature of the handover process.
n soe cases the treatent is forall prescribed under the rules of
the relevant plan so that where there are ood leaver circustances
awards which would otherwise lapse b default vest either on
the noral vestin date or on cessation of eploent. hese
circustances include death inur ill-health disabilit redundanc
or sale of the copan or business. f the director dies or leaves due to
ill health or inur  awards which have less than 1 onths of the
perforance period reainin or  awards which have less than 1
onths of the deferred period to run vest autoaticall on leavin.
nother leaver circustances the coittee has discretion to deterine
when and to what etent awardsvest.
he coittee considers the leaver circustances alon a continuu
ranin fro bad leaver scenarios such as terination of eploent
for ross isconduct or resination throuh to the ood leaver
scenarios outlined above. ccordinl the coittee a appl
or disappl such perforance conditions or tie pro-ratin to awards
vestin in these circustances as it considers appropriate.
All-employee plans – leavers
he treatent of saveshare options and directshare shares on
leavin is as deterined under the respective  approved rules.
or saveshare soeone who ceases to be an eploee in special
circustances for eaple inur disabilit death or followin sale
of the copan or business where the wor a eercise the option
within si onths after leavin or 1 onths in the case of death
or the relevant corporate event. f soeone leaves for a reason not
fallin within special circustances the option lapses on the date
theindividual leaves.
ISP/DBP – change of control
n the event of a taeover or schee of arraneent involvin the
copan  and  awards will vest at a iniu to the etent that
an applicable perforance easures have been satisfied at the tie