Experian 2010 Annual Report Download - page 70

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Experian Annual Report 2010 Governance68
Report on directors’ remuneration
The report has been drawn up in line with the Combined Code on Corporate Governance, Schedule 8 of the Large and Medium
sized Companies and Groups (Accounts and Reports) Regulations 2008 and the UK Listing Authority Listing Rules.
The Remuneration Committee: members, role and frequency of meetings
Details of the Committee members, the scope of their role and frequency of meetings can be found in the corporate governance
statement.
Working with advisers
In making its decisions, the Committee consults with the Chairman, the Chief Executive Ofcer, the Group HR Director and the
Global Head of Reward who are invited to attend meetings of the Committee as appropriate. The Chief Financial Ofcer is also
consulted in respect of performance conditions attaching to short and long-term incentive arrangements. No executives are
present when their own remuneration arrangements are being discussed.
The Committee has access to independent consultants to ensure that it receives objective advice. In 2007, Deloitte LLP
(‘Deloitte’) were appointed by the Committee as independent advisers and they continued to act during the year under review.
Deloitte also provided unrelated advisory and tax services to the Group during the year. Kepler Associates (‘Kepler’) were also
appointed by the Committee in 2007 and, during the year under review, provided advice and valuation data for Experian’s current
and proposed executive remuneration arrangements and also provided advice on target calibration for the short and long-
term incentive plans. Kepler do not provide any other services to the Group. Linklaters LLP provided legal advice in respect of
incentive plan design and interpretation.
Remuneration philosophy
Experian’s remuneration philosophy is that reward should be used to drive long-term, sustainable business performance. In
this regard, the Remuneration Committee aims to have in place a remuneration policy for Experian which is consistent with its
business objectives and is designed to:
pay market-competitive base salary levels; –
provide competitive performance-related compensation which inuences performance and helps attract and retain –
executives by providing the opportunity to earn commensurate rewards for outstanding performance, leading to long-
term shareholder value creation;
apply demanding performance conditions to deliver sustained protable growth in all our businesses, thereby aligning –
incentives with shareholders’ interests, setting these conditions with due regard to actual and expected market
conditions;
provide a balanced portfolio of incentives - both cash and share-based - which align both short-term (one-year) and –
longer-term (three-year) performance such that sustainable growth and value are delivered for our shareholders;
drive accountability and transparency and align remuneration with the interests of shareholders; and –
deliver competitive benets to underpin the other components of the remuneration package. –
Consistent with the policy, the Committee compares the Experian remuneration arrangements with those of other relevant
organisations and companies of similar size and scope to Experian. The remuneration arrangements are also reviewed in light of
changing market conditions, which have continued to be challenging over the year under review. Performance-related incentives
are targeted at upper quartile levels for outstanding performance to produce a highly leveraged package but only if the Group’s
stretching growth objectives are attained. Experian is committed to performance-related pay at all levels within the organisation
and the Committee takes into consideration the remuneration arrangements throughout Experian when determining those for
the executive directors.
Summary of remuneration arrangements for 2010/11
Each year the Committee reviews remuneration arrangements to ensure they remain suitable in the light of both internal and
external factors. This year, the Committee concluded that the key elements of our arrangements remain aligned with the core
principles of remuneration policy and long-term strategy, but that it was appropriate to make certain changes to ensure all
elements of the package effectively incentivise executives to drive long-term performance and create shareholder value. The
main changes to remuneration arrangements are summarised below.
63