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48 |Experian Annual Report 2007
Introduction | Business review | Governance |Financial statements
2.1 Remuneration of executive directors
The remuneration package is weighted towards the performance-
related elements of the package. In fair value terms, the proportion
of total pay (excluding pensions and benefits) which is variable is
approximately 71 per cent, as illustrated.
The Remuneration Committee selects performance measures that
align with the Group’s strategic goals and that are transparent and
clear to both directors and shareholders. Each element in the
reward package is designed to support the achievement of
different Company objectives, as illustrated below:
Element Purpose Delivery Policy
(a) Base salary – Reflects the competitive market – In cash – Individual contribution
salary level for the individual – Monthly – Reviewed annually
and their role. – Pensionable
– Takes account of personal
contribution, skill and performance.
(b) Annual bonus/ – Rewards the achievement of – Cash/deferred – Profit before tax
Co-investment Plan annual financial targets. shares is the key measure
– Provides opportunity to re-invest – Annual
bonus in Experian shares. – Non-pensionable
with matching opportunities.
– Aligns with shareholder
interests through delivery in shares.
(c) Experian – Aligns with shareholder interests – Shares, subject – Relative total
Performance through delivery of shares. to performance shareholder return
SharePlan – Rewards sustained growth in conditions. against a tailored
shareholder value and out-performance comparator group
compared to peers. measured over a
– Acts as a retention tool as demerger three-year period,
awards are released five years after subject to satisfactory
date of grant. overall financial
performance.
– Profit before tax
over a three-year period.
(d) Experian Share – Direct link to growth objectives – Shares under – EPS growth measured over
Option Plan through EPS growth hurdle and to option, subject to athree year period.
value creation through shareperformance
price increase. conditions.
– Aligns with shareholder interests
through deliveryof shares.
– Acts as a retention tool as options
vest equally on thirdand fourth
anniversaryof date of grant.
(e) Sharesave – Opportunity to invest in Experian – Shares under – Employees must
shares over three or five year savings option bought be in employment on
period. with accumulated qualifying date
savings at the end of in order to participate.
the savings period.
(f) Pension – To provide market competitive – Monthly – Defined benefit scheme
post-retirement benefits. contributions – US 401k (defined
contribution) arrangements.
Report on directors’ remuneration cont.