Experian 2011 Annual Report Download - page 90

88 Experian Annual Report 2011
Report on directors’ remuneration continued
The directors’ pension entitlements in respect of benefits from registered and non-registered defined benefit schemes and arrangements
are detailed in the table below.
Accrued
pension at
31 March
2011
per annum
(1)
US$’000s
Accrued
pension at
31 March
2010
per annum
(2)
US$’000s
Transfer
value at
31 March
2011
(3)
US$’000s
Transfer
value at
31 March
2010
(4)
US$’000s
Change in
transfer
value (less
director’s
contributions)
(5)
US$’000s
Additional
pension earned
to 31 March 2011
(net of inflation)
per annum
(6)
US$’000s
Transfer value
of the increase
(less director’s
contributions)
(7)
US$’000s
Don Robert 484 432 8,465 6,820 1,645 33 568
£’000s £’000s £’000s £’000s £’000s £’000s £’000s
Paul Brooks 186 166 4,065 3,306 748 15 305
Five former directors of Experian Finance plc (formerly GUS plc), one of whom died in May 2010, received unfunded pensions from
the Company during the year. Four of the former directors are paid under the SURBS. The total unfunded pensions paid to the former
directors was £508,547 (2010: £600,330).
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 2011 and 2010 respectively.
Column (3) is the transfer value of the pension in column (1) calculated as at 31 March 2011 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 2010 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” (inflation 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 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 benefit plans in which he participated during his employment; and an annual
bonus based on 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.
Don Robert’s service agreement also provides for the following payments to be made if the agreement terminates in the event of his death
(in addition to payments due but unpaid before death): a pro rata annual bonus for the bonus year to the termination date based on ESC’s
performance in that bonus year; and a lump sum equal to 12 months’ base salary to be paid no later than 90 days after the date of death.
If the employment is terminated due to Don Robert’s disability, he is entitled to the bonus as described immediately above (in addition to
payments due but unpaid before the termination). Any deferred compensation obligations will be governed in accordance with the relevant
plan rules. This is consistent with US employment practice.
In his service agreement dated 2 April 2007, upon termination of employment, at the absolute discretion of Experian Limited, Paul Brooks
may be paid base salary alone, pension contributions and benefits-in-kind (excluding bonus or incentive payments unless the company in its
absolute discretion determines otherwise) in lieu of six months’ notice (where notice is given by Paul Brooks) or 12 months’ notice (where
notice is given by Experian Limited).