Experian 2014 Annual Report Download - page 83

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Directors’ remuneration policy
Remuneration philosophy and principles
Experian’s remuneration philosophy for executive directors is that we should use reward to drive long-term, sustainable
business performance. The Committee therefore aims to have remuneration principles that are consistent with Experian’s
business objectives and are designed to:
• drive accountability and transparency, and align remuneration with shareholders’ interests;
• provide a balanced portfolio of incentives, which align both short-term (one-year) and longer-term (three-year) performance,
to deliver sustainable growth and value for our shareholders;
• apply demanding performance conditions to deliver sustained profitable growth across the Group, while setting these
conditions with due regard to actual and expected market conditions;
• pay base salaries that are market-competitive and appropriate, given an individual’s performance and experience,
as well as the remuneration arrangements throughout the Group;
• deliver competitive benefits, to complement the other components of the remuneration package;
• provide competitive performance-related compensation, which influences performance and helps to attract and retain
executives, by allowing them to earn commensurate rewards for outstanding performance that leads to long-term
shareholder value creation; and
• strengthen the alignment with shareholders through share ownership guidelines that apply to both executive and
non-executive directors.
These principles have underpinned Experian’s remuneration policy since it became an independent company in 2006. The
Committee considers that the policy has stood the test of time and is evidenced by Experian’s superior performance. The
Committee remains confident that the policy will continue to serve the interests of all of our stakeholders, through the strong
performance and reward culture that we promote throughout our workforce.
In line with these principles, the Committee compares our remuneration arrangements with those of other relevant organisations
and companies of similar size and scope. The Committee also reviews our remuneration arrangements in light of market conditions,
which have once again been challenging and are expected to remain so for the foreseeable future. Performance-related incentives
are targeted at upper-quartile levels, for achieving stretching objectives. Long-term incentives are measured over a three-year
performance period which the Committee considers is appropriate for the business and its strategic time horizons. Our shareholding
guidelines are set at high levels (300% for the Chief Executive Officer and 200% for the other executive directors) to maintain the
alignment of interests with shareholders over the longer term.
While the Committee’s primary focus is the executive directors’ remuneration, it also approves the remuneration structure for
other senior executives and works closely with the Human Resources team to ensure a consistent approach. When setting
the remuneration policy for the executive directors, the Committee takes into account the pay, employment conditions and
remuneration trends across the Group, especially when determining annual salary increases, although no specific remuneration
ratios are used. Although the Committee does not consult employees on executive directors’ pay or expressly include employees’
views in its deliberations, it is mindful of the results of our periodic global people survey which focuses, in part, on remuneration,
reward and performance.
Governance • Report on directors’ remuneration