Carphone Warehouse 2013 Annual Report Download - page 45

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COMPONENTS OF REMUNERATION
The main fixed and performance-related elements of remuneration for executive directors are as follows:
ELEMENT OPERATION AND REASON CONDITIONS
Basic salary and benefits (fixed) Fixed remuneration and benefits reflect
skills, experience and responsibilities
andare designed to attract and retain
keyemployees.
Taxable benefits consist of car allowances
and private medical cover.
Salaries are reviewed annually
withchanges ordinarily taking effect
on1July each year.
Salary reviews take into account individual
and business performance and market data.
Pension (fixed) Reasonable and competitive retirement
benefits are provided through the Company
contributing to defined contribution pension
schemes or self-invested pension plans.
The Chairman and non-executive directors
do not participate in any pension schemes.
Fixed at 5% of the executive directors’
basic salary.
Annual performance bonus
(short-term variable)
Annual performance bonuses are in place
to incentivise achievement of annual
objectives which support the short and
medium-term strategy of the Group.
These bonuses provides a strong link
between reward and performance and drive
the creation of further shareholdervalue.
The Chairman and non-executive
directors do not receive an annual
performance bonus.
The bonus scheme for the year ended
31March 2013 was based on TSR together
with specific joint venture targets based
on financial measures and a balanced
scorecard. The balanced scorecard
considered financial, customer, employee
and strategic objectives. The bonus scheme
for 2013–14 will have a similar structure.
The bonus scheme has a maximum
payment of 200% of annual salary. For the
year ended 31 March 2013 an award of
110% was made to executive directors.
Value enhancement and share option
schemes (long-termvariable)
Long-term incentive schemes align
long-term interests of key employees
andshareholders, through incentivising
agood return on shares in the Company.
Following the vesting of the Best Buy Europe
VES in the year ended 31 March 2012, there
were no long-term incentive schemes in
place during the year just ended. The shares
issued under the Best Buy Europe VES
remain restricted from sale until 2015.
No schemes were in place during the
yearended 31 March 2013, but such
schemes would ordinarily be based
onmeasures reflecting value creation
andshareholder return.
ANNUAL REPORT 2013 CARPHONE WAREHOUSE GROUP PLC 43
BUSINESS REVIEW GOVERNANCE FINANCIAL STATEMENTS