Experian 2010 Annual Report Download - page 76

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Experian Annual Report 2010 Governance74
Experian sharesave plans
All executive directors and employees of the Company, and any participating subsidiaries in which sharesave or a local
equivalent is operated, are eligible to participate if they are employed by the Group at a qualifying date. The UK sharesave plan
provides an opportunity for employees to save a regular monthly amount, over either three or ve years which, at the end of the
savings period, may be used to purchase Experian shares for up to 20% below market value at the date of grant.
Outcome of performance testing determined in 2009/10
GUS performance share plan
In June 2006, executive directors received a share award under the GUS performance share plan with a face value of one times
salary. On the demerger of Experian and Home Retail Group from GUS plc in October 2006 (‘demerger’) these awards were
automatically exchanged for equivalent awards over Experian shares. The performance condition for these awards was TSR
over the period from demerger to 31 March 2009 relative to the comparator group adopted by Experian at demerger (see below).
A threshold level of vesting of 40% of the award was available if Experian’s TSR was at the median of the comparator group,
rising on a straight-line basis to 100% of the award vesting for upper quartile performance or better. The Committee tested the
performance condition at the end of the period and determined that Experian’s TSR was at the 65th percentile of the comparator
group and, as a result, 76% of these awards vested in June 2009. Details of the number of shares which were released to the
directors are given in the table titled ‘Performance share plans’.
Experian performance share plan
At demerger, executive directors received a share award under the Experian PSP with a face value of two times salary.
The vesting of 50% of these awards was subject to achievement against a sliding scale of growth in PBT performance condition.
A threshold level of vesting of 25% of this part of the award was available for average growth in PBT of 7% per annum over a
three-year period, rising on a straight-line basis to 100% of this part of the award vesting for average PBT growth of 14% per
annum.
The vesting of the remaining 50% of these awards was subject to the performance of Experian’s TSR relative to the following
group of comparator companies (as set at the award date):
Acxiom Fair Isaac Harte-Hanks
Alliance Data Systems Fidelity National Financial IAC/Interactive Corp
Bisys Group Fimalac Moodys
Capita Group First American Reuters Group
Choicepoint First Data Thomson
Dun & Bradstreet Fiserv Total System Services
Equifax Global Payments
A threshold level of vesting of 25% of this part of the award was available if Experian’s TSR over a three-year period was at
the median of the comparator group, rising on a straight-line basis to 100% of this part of the award vesting for upper quartile
performance or better.
The Committee tested the two performance conditions at the end of the performance periods and determined that:
Experian’s average annual growth in PBT over the performance period was 13.2% and as a result 91.4% of the awards –
subject to this performance condition will vest; and
Experian’s TSR over the performance period was at the 65th percentile relative to the comparator group and as a result –
70% of the awards subject to this performance condition will vest.
The vesting date for these awards is 11 October 2011. Details of the number of shares which will be released to the executive
directors on this date are given in the table titled ‘Performance share plans’.
Report on directors’ remuneration (continued)
80
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