BT 2015 Annual Report Download - page 130

128 BT Group plc
Annual Report 2015
subect to the coittees discretion to deterine the appropriate level
of vestin havin reard to such relevant factors as it decides to tae into
account. f the acuirin copan oers to echane awards over 
shares for awards over its shares or shares in another copan awards will
norall be echaned and continue under the rules of the relevant plan.
f within 1 onths of a chane of control a participants eploent
is terinated b his eploer other than for isconduct or perforance
or he or she resined as a result of a reduction of his or her duties or
responsibilities constitutin a aterial breach of the individuals contract
the participant is entitled to receive an aount eual to the dierence
between the value he or she received on the chane of control he would
have received if the relevant perforance condition had been et in full.
n the event of a voluntar windin up of the copan awards a
vest on the ebers resolution to voluntaril wind-up the copan
bein passed.
Employment conditions elsewhere in the group
he coittee considers the pa and conditions of eploees
throuhout the copan when deterinin the reuneration
arraneents for eecutive directors althouh no direct coparison
etrics are applied.
n particular the coittee considers the relationship between eneral
chanes to UK eploees reuneration and eecutive director reward.
hilst the coittee does not directl consult with our eploees as
part of the process of deterinin eecutive pa the oard does receive
feedbac fro eploee surves that taes into account reuneration
ineneral. he coittee also receives updates fro the roup
eople irector.
Executive director and Chairman service contracts
he other e ters of the service contracts for the current eecutive
directors and the hairan are set out below.
he terination provisions described above are without preudice to s
abilit in appropriate circustances to terinate in breach of the notice
period referred to above and thereb be liable for daaes to
the eecutive director or hairan.
n the event of terination b  each eecutive director and the
hairan a have entitleent to copensation in respect of his or her
statutor rihts under eploent protection leislation in the UK.
here appropriate  a also eet a directors reasonable leal
epenses in connection with either his appointent or terination
of his appointent.
here are no other service areeents letters of appointent or
aterial contracts eistin or proposed between the copan and
anof the eecutive directors
Illustration of executive director pay scenarios
ur reuneration polic ais to ensure that a sinificant proportion of
pa is dependent on the achieveent of stretchin perforance tarets.
he coittee has considered the level of total reuneration that would
be paable under dierent perforance scenarios and is satisfied that
as the raph below illustrates eecutive pa is appropriate in the contet
of the perforance reuired and is alined with shareholders interests.
he illustrative scenarios below set out the total reuneration that
iht be received b each eecutive director for dierent levels of
perforance based on our reuneration polic.
he iniu reects base salar pension and benefits onl which are
not perforance related.
Performance Assumptions
Fixed pay All scenarios  onsists of total fied pa  base
salar benefits and pension
ase salar  salar eective as
at une 01
enefits  aount received b
each director in 011
ension  cash suppleent in
lieu of pension provision for
011
Variable
pay
iniu  o paout under the annual bonus
 o vestin under the 
On-target  0 of the aiu paout
under the annual bonus
  of aiu vestin under
the 
aiu  100 of the aiu paout
under the annual bonus
 100 of aiu vestin under
the 
)RUWKHVHSXUSRVHVZHKDYHDVVXPHGDXVXDOPD[LPXP,63DZDUGRIRIEDVHVDODU\IRU
WKH&(2DQGRIEDVHVDODU\IRUWKH*)'7KHDEVROXWHPD[LPXP,63DZDUGXQGHURXU
remuneration policy is 500% of base salary.
)RUWKH*)'ZHKDYHDOVRDVVXPHGDPD[LPXPERQXVRSSRUWXQLW\RIRIVDODU\.
Provision Policy
1RWLFHSHULRG  1 onths notice b the copan si onths notice b the eecutive director or hairan
there is no fied epir date.
Termination payment  n lieu of ivin an eecutive director or the hairan 1 onths notice  a terinate the directors
contract and ae a paent in lieu of salar to which the director was entitled if he or she had received
notice and the value of contractual benefits for the period.
 n respect of the eecutive directors the paents in lieu will be paable in eual onthl instalents until
the date on which the notice period would have epired or if earlier the date on which the director secures
alternate eploent with the sae or hiher basic salar or fee. n the event that the director secures
alternate eploent at a basic salar of 0000 or hiher but lower than their salar paent in lieu will
be reduced b the aount of the new lower salar received. he oard retains the riht to lower the paent
in lieu of the directors new eploent if it considers the new eploent ters of the director are not
appropriatel balanced between basic salar and other eleents and a cease ain paents entirel
where the oard is not satisfied the director is ain reasonable eorts to secure alternative eploent.
 n respect of the hairan the paent in lieu will be paable in eual onthl instalents until the earlier of
1 onths fro the date of terination or the date the hairan secures alternate full-tie eploent.
5HPXQHUDWLRQDQGEHQHƬWV  articipation in the incentive plans   and annual bonus saveshare and directshare is non-contractual.
he hairan does not participate in the   or an annual bonus.
 ther benefits include pension includin life cover dental cover car private health care includin spouse
and children under ae of 1 or 1 if in full tie education telecounication facilities hoe securit and
professional subscriptions. he hairan does not receive pension benefits but is entitled to all other benefits.
 he hairan receives an all-inclusive fee for the role.