Experian 2015 Annual Report Download - page 98

Element and
link to strategy Operation
Maximum potential value
and payment at target
Performance metrics,
weightings, relevant time
period and clawback
Pension
Provides competitive
retirement provision.
In the UK, the Group operates a defined contribution
plan with company contributions set as a percentage
of base salary. An individual may elect to receive a
cash allowance instead.
The Group also operates a defined benefit plan
which is now closed to new entrants, except in the
exceptional circumstance that this was necessary, for
example, to recruit an executive director to the Board.
In the USA, executive directors are eligible to join a
defined contribution plan.
As agreed on his appointment to the Board in
2006, a supplementary unfunded defined benefit
arrangement was provided in the USA for Don
Robert, which broadly mirrors the pension that
would have been provided through the UK defined
benefit plan.
In the UK, the cash
payment or pension
contribution for executive
directors is normally
equal to 20% of annual
gross salary but may
be increased if market
practice changes.
In the USA, the
contribution rate is
equivalent to 4% of
earnings, up to an
annual compensation
limit set by the Internal
Revenue Service.
None.
Annual bonus
Motivates and rewards
the achievement of
specific financial
objectives, linked to
Experian’s strategy to
drive profitable growth.
The Committee approves the performance targets
at the start of each financial year.
At the end of the financial year, the Committee
determines the extent to which these have been
satisfied, based on audited results, and agrees the
level of bonus.
Payment is made as soon as practicable after the
financial year-end, unless the executive director
elects to defer some or all of their bonus into the CIP.
Minimum payout is zero.
For below-target
performance, a payout
would generally
only be made if the
Committee judges that
circumstances justify it.
Bonus of 100% of
salary is payable for
target performance.
Bonus of 200% of
salary is payable for
maximum performance.
The annual bonus
is entirely based on
financial performance.
The Committee will
exercise its judgment
on whether to vary
the level of payout, if
it considers that the
payout determined by
measuring performance
is inconsistent with
the Group’s actual
underlying financial and
operational performance.
Clawback provisions apply.
CIP
Use of stretching
financial metrics
incentivises
performance.
Aligns with shareholder
interests through
personal investment
and delivery of shares.
Encourages participants’
long-term commitment
to the Group through
personal investment.
Participants are invited to invest between 50% and
100% of their annual bonus in Experian shares.
A conditional award of matching shares is granted on
a two-for-one basis, and will vest subject to achieving
performance targets tested over a three-year period.
Dividend equivalents accrue on conditional awards
of shares.
Minimum vesting of
matching shares is zero.
Nothing vests for below-
target performance.
For target performance,
matching shares vest
on a one-for-one basis.
For maximum
performance, matching
shares vest on a two-for-
one basis.
Vesting of awards is based
on financial performance,
subject to the Committee
being satisfied that the
vesting is not based on
materially misstated
financial results.
The Committee will
exercise its judgment
on whether to vary the
level of vesting, if it
considers that the level
of vesting determined by
measuring performance
is inconsistent with
the Group’s actual
underlying financial and
operational performance.
Clawback provisions apply.
96 Report on directors’ remuneration
Directors’ remuneration policy continued
•Governance