Experian 2011 Annual Report Download - page 79

Download and view the complete annual report

Please find page 79 of the 2011 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

77
Governance Report on directors’ remuneration
The management of the Group’s specific business risks is governed by its risk management framework and is inherent in the way in which
Experian operates. As a result of this operational focus on risk management, the Committee is satisfied that the incentive arrangements
do not encourage excessive risk taking and therefore it is not considered necessary to have a direct link to risk in the performance measures
used. In addition, as outlined above, ‘claw back’ provisions have been introduced to minimise risk within the remuneration arrangements.
With respect to Responsible Investment Disclosure, the Committee is satisfied that environmental, social and governance risks are not
raised by the incentive structure for senior management and this does not inadvertently motivate irresponsible behaviour.
Remuneration of executive directors
The following graphs illustrate the remuneration package for the executive directors, split between fixed and variable pay, at target and
maximum levels of performance. The combined potential remuneration from annual bonus and share-based incentives (i.e. variable pay)
outweighs the fixed elements (excluding pension and benefits) at both levels of performance.
Expected value of executive directors’
remuneration at target performance
Variable: long-term
Variable: short-term
Fixed
100%
80%
60%
40%
20%
0%
Expected value of executive directors’
remuneration at maximum performance
Variable: long-term
Variable: short-term
Fixed
100%
80%
60%
40%
20%
0%
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 entitled
‘Executive directors’ service contracts’.
Fixed remuneration
Base salary and benefits
Before making a final decision on individual salary awards, the Committee assesses each director’s individual performance and experience
as well as average pay increases awarded to other employees in the Group. To assess the appropriate salary for a role, benchmark data,
sourced from external remuneration consultants, is provided to the Committee. Executive directors’ salaries are benchmarked against those
of executive directors from the companies in the FTSE 100 Index along with other global comparators, reflecting 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 financial services and related industries and companies with significant operations in the same markets as Experian.
The Committee reviewed salaries in early 2011 and, taking into account the factors described above, approved increases as detailed overleaf.
These increases are in line with those awarded to the wider employee population.
38
88