Experian 2016 Annual Report Download - page 84

INTRODUCTION FROM THE CHAIRMAN
The Remuneration Committee (the ‘Committee’) is pleased to present its Report on directors’ remuneration (the ‘Report’) for
the year ended 31 March 2016. The Committee’s aim is to ensure that our remuneration policy and outcomes support Experian’s
business strategy, details of which you can find in the Our strategy section of this Annual Report. In order to achieve this, we
have carried out a number of activities during the course of the year and full details of these, as well as the Committee’s roles
and responsibilities, are set out in the section entitled The Remuneration Committee.
This year, we have made some changes to the layout of the Report and, in particular, have included a Remuneration at a glance
section to provide shareholders with a summary of our historical and forward-looking pay relative to performance.
The rest of the Report is split into two sections: the first is our Annual report on remuneration – which explains how we implemented
our Directors’ remuneration policy for the year ended 31 March 2016, and how we propose to implement it for the year ending
31 March 2017 – and the second sets out our remuneration policy table as approved by shareholders on 16 July 2014, and which
applies until the 2017 AGM. Shareholders will be invited to approve the Annual report on remuneration at the AGM on 20 July 2016.
Pay and performance in the last financial year
Business context
The past year has seen us make meaningful progress, delivering strong financial and business results. More information on this can
be found elsewhere in this Annual Report. However, I would like to particularly note the performance of our business in Brazil, which
has held up well in the face of the challenging economic environment in the country; and the return to growth in North America
following the actions taken to reposition our North American Consumer Services business, where we are now seeing an underlying
improvement in trends. During the year, we have also delivered organic revenue growth of 5%, whilst maintaining our EBIT margin at
constant currency and returning US$972m to our shareholders through dividends and net share purchases.
Annual bonus
In light of the strong business performance and in line with the overall Benchmark PBT performance against the targets set at the
beginning of the year, the Committee approved a maximum bonus payout to each of the executive directors. Further details of the
annual bonus outcomes are set out in the Annual report on remuneration.
Long-term incentives
Performance periods for the awards granted under the Co-investment plan (‘CIP’) and Performance Share Plan (‘PSP’) in 2013
ended on 31 March 2016 and, accordingly, the Committee considered the vesting of the awards this year. The CIP awards were based
equally on Benchmark PBT growth and cumulative operating cash flow targets. Although the cumulative operating cash flow target
was partially met, we did not meet our stretching three-year Benchmark PBT growth targets and, as a result, 47.6% of the CIP awards
vested. The PSP awards were based on Benchmark PBT growth and total shareholder return (‘TSR’) targets. As the TSR target was
partially met, 11.3% of the PSP awards vested. Further details on the long-term incentive outcomes are set out in the Annual report
on remuneration.
Salary
During the year, the Committee approved salary increases for the executive directors of between 2.8% and 2.9%. These increases
were in line with those awarded to the wider employee population across the Group. Further details are set out in the Annual report
on remuneration.
Report on directors’ remuneration
Roger Davis – Chairman of Remuneration Committee
Current members
Roger Davis (Chairman)
George Rose
Luiz Fleury
Judith Sprieser
Deirdre Mahlan
Paul Walker
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82 Governance •Report on directors’ remuneration