Experian 2008 Annual Report Download - page 64

62 Experian Annual Report 2008
Executive directors’ annual pension
Don Robert is provided with benefits through a Supplementary Executive Retirement Plan (‘SERP’) which is a defined
benefit arrangement in the US. The figures below are in respect of his SERP entitlement. He also participates in a US
defined contribution arrangement and the employer contributions to this arrangement during the year were $3,692 (2007:
$9,423).
Paul Brooks is a member of the registered Experian Pension Scheme. His benefits within the Scheme are restricted by an
earnings cap. However, benefits in excess of this cap are provided for through the Experian Limited SURBS. The pension
figures below reflect both his registered and non-registered entitlement.
The table below provides the disclosure of the above directors’ defined benefit pension entitlements in respect
of benefits from registered schemes and non-registered arrangements.
Additional
pension Transfer
Accrued Accrued Change earned to value
pension at pension at Transfer Transfer in transfer 31 March 2008 of the
31 March 31 March value at value at value (less (net of increase
2008 2007 31 March 31 March director’s inflation) (less director’s
per annum per annum 2008 2007 contributions) per annum contributions)
(1) (2) (3) (4) (5) (6) (7)
$’000 pa $’000 pa $’000 $’000 $’000 $’000 pa $’000
Don Robert 311 252 5,586 4,006 1,580 49 877
£’000 pa £’000 pa £’000 £’000 £’000 £’000 pa £’000
Paul Brooks 101 74 1,254 995 251 24 294
Six former directors of Experian Finance plc (formerly GUS plc) have been receiving unfunded pensions from the Company for
a number of years. The pensions of two of these former directors were transferred into the registered scheme in October 2006.
Three of the former directors are now members of the SURBS that provides security for the unfunded pensions of executives
affected by the HMRC earnings cap. In addition, one former director, who retired with effect from 31 March 2007, is now receiving
an unfunded pension through the SURBS. The total unfunded pensions paid to the former directors was £539,644 (2007:
£445,646).
Notes:
Columns (1) and (2) represent the deferred pension to which the director would have been entitled had they left the Group at 31 March 2008 and 2007 respectively.
Column (3) is the transfer value of the pension in column (1) calculated as at 31 March 2008 based on factors supplied by the actuary of the relevant group pension
scheme in accordance with UK actuarial guidance note GN11.
Column (4) is the equivalent transfer value, but calculated as at 31 March 2007 on the assumption that the director left service at that date.
Column (5) is the change in transfer value of accrued pension during the year net of contributions by the director.
Column (6) is the increase in pension built up during the year, recognising (i) the accrual rate for the additional service based on the pensionable salary in force at
the year end, and (ii) where appropriate the effect of pay changes in real (inflation adjusted) terms on the pension already earned at the start of the year.
Column (7) represents the transfer value of the pension in column (6).
The disclosures in columns (1) to (5) are equivalent to those required by the UK Directors’ Remuneration Report Regulations and those in columns (6) and (7) are
those required by the UK Listing Authority’s Listing Rules.
Directors’ service contracts
In accordance with Don Robert’s service agreement with Experian Services Corporation (‘ESC’) dated 7 August 2006,
if his employment is terminated by ESC without cause he is entitled to the following severance payments: continued
payment of monthly salary for 12 months from the termination date; 12 months’ participation in welfare benefit plans in
which he participated during his employment; and an annual bonus based on a 100% achievement of objectives payable in
equal monthly instalments for 12 months. The same amounts are payable by ESC if Don Robert terminates the contract:
(i) following material breach by ESC; or (ii) for Good Reason following a change of control of ESC. Good Reason means,
during the six month period following a change of control, a material and substantial adverse reduction or change in Don
Robert’s position.
Don Robert’s service agreement also provides for the following payments to be made if the agreement terminates in the
event of Don Robert’s death (in addition to payments due but unpaid before death): a pro rata annual bonus for the bonus
year to the termination date based on ESC’s performance in that bonus year; and a lump sum equal to 12 months’ base salary
to be paid no later than 90 days after the date of death. If the employment is terminated due to Don Robert’s disability he is
entitled to the bonus as described immediately above (in addition to payments due but unpaid before the termination). Any
Report on directors’ remuneration continued