Experian 2011 Annual Report Download - page 81

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79
Governance Report on directors’ remuneration
CIP awards in respect of the year ended
31 March 2010 (50% of an award)
2:1
1:1
Experian’s average annual PBT growth over three years
Level of match awarded
5% 11%
CIP awards in respect of the year ended
31 March 2010 (50% of an award)
2:1
1:1
Experian’s cash flow over three years
Level of match awarded
US$2,900m US$3,300m
The Committee has selected these two performance measures as they reflect two of Experian’s key strategic objectives (driving profitable
growth and optimising capital efficiency).
Annual bonus in respect of the year ended 31 March 2011
The Committee set stretching targets for the annual bonus in respect of the year ended 31 March 2011 which required broadly upper quartile
levels of performance (with reference to relevant external benchmarks) in order for maximum bonus to be earned. In what continued to be
a testing and uncertain business environment for both Experian and our clients, the Group delivered an exceptional performance and as a
result of this a bonus of 196.7% of salary is payable to the executive directors in respect of the year ended 31 March 2011.
CIP awards in respect of the year ended 31 March 2011
The three executive directors have elected to defer 100% of their bonus earned in respect of the year ended 31 March 2011 into the CIP. It is
intended the same performance measures will be used for the matching awards to be made this year as for the awards made in June 2010
(i.e. growth in PBT and cash flow). The Committee has reviewed the performance targets associated with these measures in the light of
the improved economic conditions in which Experian is operating and has determined that these should be made more stretching than in
recent years. Both performance conditions will be measured over a three-year period. For the 50% of the matching share awards subject to
the growth in PBT performance condition, a 1:1 match will vest for growth in PBT of 7% p.a. on average, increasing to vesting of a 2:1 match
if PBT growth of 14% p.a. is achieved. For the 50% of the matching share awards subject to the cash flow performance condition, a 1:1 match
will vest for cash flow of US$3,000m, increasing to vesting of a 2:1 match if cash flow of US$3,400m is achieved. These performance targets
are illustrated in the graphs below.
CIP awards in respect of the year ended
31 March 2011 (50% of an award)
2:1
1:1
Experian’s average annual PBT growth over three years
Level of match awarded
7% 14%
CIP awards in respect of the year ended
31 March 2011 (50% of an award)
2:1
1:1
Experian’s cash flow over three years
Level of match awarded
US$3,000m US$3,400m