Experian 2010 Annual Report Download - page 84

Experian Annual Report 2010 Governance82
Report on directors’ remuneration (continued)
Executive directors’ annual pension
Don Robert is provided with benets through a Supplementary Executive Retirement Plan (‘SERP’) which is a dened benet
arrangement in the US. The gures below are in respect of his SERP entitlement. He is also entitled to participate in the US
dened contribution arrangement (401k Plan). The employer contributions to this arrangement during the year were nil (2009:
US$8,507).
Paul Brooks is a member of the registered Experian UK pension scheme. His benets are restricted by an earnings cap.
However, benets in excess of this cap are provided for through the Experian Limited SURBS. The pension gures below
reect both his registered and non-registered entitlement.
Chris Callero is a participant in the US dened contribution arrangement (401k Plan) and during the year the employer
contributions to this arrangement were nil (2009: US$11,553).
The table below provides the disclosure of the above directors’ pension entitlements in respect of benets from registered and
non-registered dened benet schemes and arrangements.
Accrued
pension at
31 March
2010
per annum
(1)
US$’000 pa
Accrued
pension at
31 March
2009
per annum
(2)
US$’000 pa
Transfe r
value at
31 March
2010
(3)
US$’000
Transfe r
value at
31 March
2009
(4)
US$’000
Change in
transfer
value (less
director’s
contributions)
(5)
US$’000
Additional
pension earned
to 31 March 2010
(net of ination)
per annum
(6)
US$’000 pa
Transfer value
of the increase
(less director’s
contributions)
(7)
US$’000
Don Robert 432 376 6,802 6,503 317 56 882
£’000 pa £’000 pa £’000 £’000 £’000 £’000 pa £’000
Paul Brooks 166 132 3,306 2,181 1,116 34 671
Five former directors of Experian Finance plc (formerly GUS plc) receive unfunded pensions from the Company. Four of the
former directors are paid under the SURBS. The total unfunded pensions paid to the former directors was £600,330 (2009:
£566,734).
Notes:
Columns (1) and (2) represent the deferred pension to which the director would have been entitled had he left the Group at 31 March 2010 and 2009
respectively.
Column (3) is the transfer value of the pension in column (1) calculated as at 31 March 2010 based on factors supplied by the actuary of the relevant Group
pension scheme in accordance with version 8.1 of the UK actuarial guidance note GN11.
Column (4) is the equivalent transfer value, but calculated as at 31 March 2009 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” (ination 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 Large and Medium-sized Companies and Groups (Accounts and Reports)
Regulations 2008 and those in columns (6) and (7) are those required by the UK Financial Services Authority’s Listing Rules.
Executive directors’ service contracts
Don Robert has a service agreement with Experian Services Corporation (‘ESC’) dated 7 August 2006. This provides that, 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 benet 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. These terms are in line with
US practice.