Experian 2010 Annual Report Download - page 71

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69
Introduction
2 – 11
Business review
12 – 51
Financial statements
85 – 160
Governance
52 – 84
The Remuneration Committee has reviewed the overall quantum of the remuneration package for executive directors relative
to relevant market benchmarks and has concluded that no grants will be made to executive directors under the Experian share
option plan in 2010. This plan remains part of the suite of long-term incentives which the Committee may choose to use in
subsequent years, if circumstances warrant this. The Committee has also considered again the performance measures used
across all incentive plans and decided to include cumulative operating cash ow as an additional performance measure for the
co-investment plan (‘CIP’). Performance targets for awards to be made in 2010 have been increased from those for the awards
made in 2009 to reect the improving economic climate. The revised arrangements will reduce the proportion of incentives which
are determined with reference to prot based performance measures.
Further details of how remuneration arrangements were operated during 2009/10 and are intended to be operated going forward
are set out in the following pages.
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 are
provided in the section titled 'Executive directors’ service contracts'.
Remuneration of executive directors
Each element of reward is important and has a specic role in achieving the aims of the remuneration philosophy. The combined
potential remuneration from annual bonus and share-based incentives outweighs the other elements and is subject to
performance conditions, thereby placing much of it at risk. In fair value terms, the proportion of the executive directors’ total
remuneration (excluding pension and benets) which is variable is approximately 74%, as illustrated.
Fixed remuneration
Base salary and benets
To assess the appropriate market salary for a role, external remuneration consultants provide benchmark data to the
Remuneration Committee. Executive directors’ salaries are benchmarked against the mid-market of executive directors from
the companies in the FTSE 100 Index and other global comparators, reecting the markets from which Experian recruits talent.
These include, but are not limited to, international companies of a similar size and geographic scope, companies in the nancial
services and related industries and companies with signicant operations in the same markets as Experian (for example, North
America). Before making a nal decision on individual salary awards, the Committee assesses each director’s contribution to
the business to reect individual performance and experience as well as the average pay increase awarded for other employees
in the Group.
The Chief Executive Ofcer (‘CEO’) has not received an increase in base salary since 1 April 2007 and the other executive
directors last received a base salary increase on 1 April 2008. The Committee reviewed salaries in early 2010 and. taking into
account the factors described above, approved increases as detailed below:
In addition to base salary, executive directors receive certain benets-in-kind including a car or car allowance, private health
cover and life assurance. These are set at market norms for each role.
Salary to
31 March 2010
Salary from
1 April 2010
Don Robert US$1,400,000 US$1,450,000
Paul Brooks £460,000 £475,000
Chris Callero US$900,000 US$930,000
Fair value of executive director remuneration
Variable: short-term
Fixed
Variable: long-term
82