Experian 2010 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 of the 2010 Experian annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 164

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164

Experian Annual Report 2010 Governance70
Report on directors’ remuneration (continued)
Summary of remuneration
The Remuneration Committee selects performance measures that are designed to be aligned with the Group’s strategic goals
and that are transparent to directors and shareholders. Each element of remuneration is designed to support the achievement
of different corporate objectives, as outlined in the following table.
Element
Purpose and link to
remuneration philosophy
Delivery
Key features
Base salary Reects the competitive –
market salary level for the
individual and their role
Takes account of personal –
contribution and performance
In cash –
Pensionable –
Based on individual contribution –
Reviewed annually –
Annual bonus Rewards the achievement of –
annual nancial targets
In cash –
Not pensionable –
Performance measure is –
Benchmark PBT1
Experian
co-investment
plan
Participants are eligible to invest –
their annual bonus in Experian
shares with the opportunity to
earn matching shares.
Aligns with shareholder –
interests through delivery of
shares
Clearly links pay and performance –
and encourages long-term
commitment
Deferred shares –
Matching shares, –
subject to performance
conditions
Not pensionable –
Performance measures for –
matching shares are:
• Growth in Benchmark PBT1 over a
three-year period ; and
• Cumulative operating cash ow
performance over a three-year
period.
Experian
performance
share plan
Aligns with shareholder –
interests through delivery of
shares
Rewards sustained growth –
in shareholder value and out-
performance relative to market
Acts as a retention tool –
Shares, subject –
to performance
conditions
Not pensionable –
Performance measures are: –
• Total shareholder return out-
performance measured over a three-
year period;
• Growth in Benchmark PBT1 over a
three-year period; and
• Vesting subject to achieving
satisfactory Return on Capital
Employed (‘ROCE’) performance
Experian share
option plan2
Direct link to value creation –
through share price growth
Aligns with shareholder –
interests through delivery of
shares
Acts as a retention tool –
Shares under option, –
subject to performance
conditions
Not pensionable –
Performance measure is –
Benchmark EPS1 growth over
a three-year period, subject to
satisfactory ROCE performance
Sharesave (or
equivalent)
Opportunity to invest in Experian –
shares over a three or ve year
savings period
Shares under –
option bought with
accumulated savings
at the end of the
savings period
Must be in employment on –
a qualifying date in order to
participate
Pension To provide market competitive –
post-retirement benets
Post retirement –
payments
Dened benet –
Dened contribution including US –
401k arrangements
1. All subsequent references in the report on directors’ remuneration to PBT or EPS refer to Benchmark PBT or Benchmark EPS respectively.
2. No grants are being made under this plan in 2010.