Experian 2011 Annual Report Download - page 77

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75
Governance Report on directors’ remuneration
Elements Key features Purpose and link to strategy
Base salary Reflects the competitive market salary for
the role
Reviewed annually against level of pay
awards throughout the organisation,
external market and in the light of Group
and personal performance
Takes account of personal contribution and
performance against Group strategy
Annual bonus Performance measure is growth in
Benchmark profit before tax (‘PBT’)(1)
Maximum bonus for executive directors is
200% of salary
Rewards achievement against a stretching
performance condition linked to Experian’s
strategy to drive profitable growth
Experian
Co-investment Plan
Participants are invited to invest some or
all of their annual bonus in Experian shares
with the opportunity to earn matching
shares (at a maximum of two shares
for every one invested) subject to the
following performance measures, tested
over a three-year period:
• Growth in PBT(1); and
• Cumulative operating cash flow ('cash flow')
Performance measures directly link to
Experian’s strategy to drive profitable
growth and optimise capital efficiency
Aligns with shareholder interests through
delivery of shares
Encourages long-term commitment to the
Group from participants
Experian Performance
Share Plan
An award of shares of up to 200% of
salary (in normal circumstances) may be
made which vests subject to the following
performance measures, tested over a
three-year period:
• Growth in PBT(1); and
• Total shareholder return ('TSR') out-
performance.
In addition, awards will be subject to the
achievement of satisfactory Return on
Capital Employed (‘ROCE’) performance
Performance measures directly link to
Experian’s strategy to drive profitable
growth and optimise capital efficiency
Aligns with shareholder interests
through use of total shareholder return
performance criteria and delivery of shares
Benefits Defined benefit or defined contribution
pension
Other benefits including car and private
medical insurance
To provide market appropriate benefits
1 All subsequent references in the report on directors’ remuneration to PBT refer to Benchmark PBT
Summary of remuneration elements