Experian 2008 Annual Report Download - page 54

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52 Experian Annual Report 2008
Remuneration policy
Experian’s policy is to use reward to drive business performance. The remuneration committee has determined that
the policy set out in last year’s remuneration report remains appropriate for the coming year. The remuneration
policy will be regularly reviewed by the committee.
The remuneration committee aims to have in place a remuneration policy for Experian which is consistent with its
business objectives, and which can:
pay market-competitive base salary levels but no higher than this;
l
provide competitive performance-related compensation which influences performance, and helps attract and retain l
executives by providing the opportunity to earn substantial rewards for outstanding performance leading to long-term
shareholder value creation;
apply demanding performance conditions to deliver sustained profitable growth in all our businesses, thereby aligning
l
incentives with shareholders’ interests;
provide a balanced portfolio of incentives - bonus, options and shares which align both short term (one year) and longer
l
term (three years plus) performance such that sustainable growth and value are delivered for our shareholders;
drive accountability and transparency and align remuneration to the interests of shareholders; and
l
deliver competitive benefits to underpin the other components of the remuneration package. l
Consistent with the policy, the committee reviews the elements of the remuneration package relative to other
comparable organisations and other companies of similar size and scope to Experian. Performance-related
incentives are calibrated at upper quartile levels for outstanding performance to produce a highly leveraged package
if the Group’s growth objectives are attained. Experian is committed to performance-related pay at all levels within
the organisation. All employees are encouraged to become shareholders in the Company.
Service contracts
Each executive director has a rolling service contract which can be terminated by the Group giving twelve months’
notice. In the event of termination of the director’s contract, any compensation payment is calculated in accordance
with normal legal principles, including the application of mitigation to the extent appropriate in the circumstances of
the case. Further details can be found on page 62.
Remuneration of executive directors
Each element of reward is important and has a specific role in achieving the aims of the remuneration policy. The
combined potential remuneration from annual bonus and share awards outweighs the other elements and is subject
to performance conditions, thereby placing the majority of the package at risk.
The remuneration package is weighted towards the performance-related elements of the package. In fair value terms,
the proportion of total remuneration (excluding pension and benefits) which is shown as variable is approximately
71% as illustrated.
Report on directors’ remuneration
Fair value of executive director remuneration
Variable 71%
Fixed 29%