Experian 2015 Annual Report Download - page 102

Approach to recruitment remuneration
Experian is a global organisation, competing for market share and executive talent in nearly 40 countries. We are a leader in the
information services industry, where demand for talented leaders often outstrips supply. Therefore, from time to time it is necessary to
appoint high-calibre executives to the Board, either by recruiting externally or by promoting from within the Group. The Committee does
not believe in over-paying. In developing a remuneration package for a newly appointed executive director, the Committee will look to
set a base salary which takes into account factors such as the individual’s skills and experience, the role the individual will be taking up,
internal relativities, the marketplace in which the executive will operate and the individual’s current remuneration package. The incentive
arrangements and benefits offered, including any relocation arrangements, would typically be in line with the remuneration policy set out
in this report. The Committee would also take into account the likely vesting and resulting value of any equity or other incentives that the
new hire would be giving up.
In the case of an internal promotion to the Board, any existing variable pay element or benefit may be allowed to continue on the
same terms.
The Committee has set the normal maximum level of variable remuneration on recruitment at 800% of base salary. This is in line with
the normal levels currently available under our variable remuneration structure, and covers the maximum annual bonus, the maximum
face value of a matching award under the CIP and the normal maximum face value of an award under the PSP.
As detailed in the policy table in the Directors’ remuneration policy report, the rules of the incentive plans provide for award limits as set
out in the following table:
Award level Normal maximum Exceptional maximum
Annual bonus 200% 200%
CIP 400% 400%
PSP 200% 400%
SOP –400%
When recruiting an executive director, the Committee will always seek to apply the normal maximum limits but may, in exceptional
circumstances, make awards up to the higher limits if it felt it was necessary to secure the appointment of a particular individual.
In the case of an external appointment to the Board, the Committee may offer further one-off cash and/or share-based remuneration,
when an individual would be forfeiting remuneration awarded to them by their former employer. In establishing the value and conditions
attached to such remuneration, the Committee would seek to provide equivalence in value by taking into account the likelihood of
vesting, and the timeframe in which such vesting was scheduled to occur. Such awards may be granted under the terms of UK Listing
Rule 9.4.2.
Service contracts and policy on payment for loss of office
The policy for new hires is that service contracts will generally be limited to 12 months’ notice of termination of employment and will
follow the UK Corporate Governance Code guidelines.
The Committee believes this policy is in line with best practice, remains market-competitive and allows Experian to recruit key individuals
who we identify as critical to our future performance.
The Committee’s policy for the treatment of executive directors leaving the Group (subject to the current contractual commitments
described opposite) is set out in the table opposite. For executive directors who leave the Group in other circumstances, the treatment
will normally fall between the two treatments described. In any event, the overall treatment will be subject to the Committee’s judgment.
The Committee reserves the right to make additional exit payments to discharge an existing legal obligation (or by way of damages
for breach of such an obligation) or by way of settlement or compromise of any claim arising in connection with the termination of a
director’s office or employment.
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100 Report on directors’ remuneration
Directors’ remuneration policy continued
•Governance