BT 2016 Annual Report Download - page 123

Overview The Strategic Report Governance Financial statements Additional information
129
Annual Remuneration Report
This part of the Report summarises key
elements of the directors’ remuneration
in 2015/16.
Single gure remuneration
The following sets out the full review of directors’ emoluments,
including bonus and deferred bonus, and long-term incentive
plans and pension arrangements.
Directors’ emoluments (audited)
Directors’ emoluments for the financial years 2015/16
and 2014/15 are set out in the table below.
Basic salary
and fees
(2015/16)
£000
Basic salary
and fees
(2014/15)
£000
Benefits
excluding
pension
(2015/16)
£000
Benefits
excluding
pension
(2014/15)
£000
Annual
Bonusa
(2015/16)
£000
Annual
Bonusa
(2014/15)
£000
ISPb
(2015/16)
£000
ISPc
2014/15)
£000
Pension
allowance net
of pension
contributionsd
(2015/16)
£000
Pension
allowance net
of pension
contributionsd
(2014/15)
£000
Total
2015/16
£000
Total
2014/15
£000
Sir Michael Rake 675 656 31 30 706686
G Pattersone969 946 57 54 1,057 1,322 3,022 1,956 291 284 5,396 4,562
T Chanmugam 643 625 32 32 587 714 1,405 1,836 193 188 2,860 3,395
T Ball 112 103 112 103
I Conn 103 79 103 79
T Höttgesf– – – –
I Hudson 99 32 99 32
M Inglisg47 –47 0
K Richardsonh114 100 16 16 130 116
N Rose 152 147 152 147
J Whitbread 97 91 97 91
Sub-total 3,011 2,779 136132 1,644 2,036 4,427 3,792 484 472 9,702 9,211
Former directors
P Hodkinsoni143 168 2145 168
W Eastj17 94 17 94
Total 3,171 3,041 138132 1,644 2,036 4,427 3,792 484 472 9,864 9,473
a Annual bonus shown includes both the cash and deferred share element. The deferred element of
the 2015/16 bonus includes the value of deferred shares to be granted in June 2016. Further
details of the deferred element are set out below.
b Value shown represents the estimated value of ISP awards granted in 2013 that are expected to
vest in May 2016. The estimate is based on a three‑month average share price from 1 January
2016 to 31 March 2016 of £4.63. Further details are provided on pages 130 to 131.
c Vesting of ISP 2012 granted in June 2012 and vested in May 2015 at a share price of £4.69.
The value shown last year of £1,812 for the Chief Executive and £1,767 for the Group Finance
Director were based on an estimated share price of £4.35.
d Pension allowance paid in cash for the financial year – see ‘Total pension entitlement’ on page 131.
e The 2015/16 ISP figure reects two awards granted in 2013. One as CEO BT Retail and one as
Chief Executive.
f Tim Höttges was appointed as a director on 29 January 2016. Under the terms of the Relationship
Agreement between BT and Deutsche Telekom and Tim's letter of appointment, no remuneration is
payable for this position.
g Mike Inglis was appointed as a director on 1 September 2015.
h Includes an additional fee for regular travel to Board and Board Committee meetings.
i Phil Hodkinson retired as a director on 31 January 2016. Value shown relates to reimbursement
of reasonable travelling and other expenses (including any relevant tax) incurred in carrying out his
duties.
j Warren East retired as a director on 31 May 2015.
Additional disclosures relating to the single
gure table
Salaries
We reviewed Gavin Patterson’s salary and increased it to
£972,500 in June 2015. This was an increase of 2.4% from the
prior year. At the same time we increased Tony Chanmugam’s salary
to £646,000, an increase of 2.5%.
The salaries for both Gavin and Tony remain positioned below the
median against our comparator group of companies of a similar
size and complexity.
Benets
Benefits provided to executive directors and the Chairman include
company car, fuel or driver, personal telecommunication facilities
and home security, medical and dental cover (for the directors and
immediate family), special life cover, professional subscriptions,
personal tax advice and financial counselling.
Annual bonus
Executive directors were eligible for an annual bonus based on:
corporate financial performance targets, customer service and
personal contribution. The customer service element of the annual
bonus is paid only if a minimum adjusted EPS threshold is achieved.
The annual bonus is paid in two elements, a cash element, and a
deferred element awarded in shares.
The Chief Executive’s target bonus opportunity was 120% of
salary and the maximum was 240% of salary.
The target bonus opportunity for the Group Finance Director was
105% of salary with a maximum of 210% of salary.
The bonus weightings for the two roles are described on page 130.