Holiday Inn 2014 Annual Report Download - page 85

Notes to single total figure of remuneration – Executive Directors (audited information)
Kirk Kinsell – remuneration arrangements on departure
Kirk Kinsell left the Board and his role as President, The Americas effective as of 13 February 2015. The Remuneration Committee
determined that Mr Kinsell would be treated as a Good Leaver for the purposes of the LTIP awards, in line with the DR Policy on termination
of employment. He therefore retained all outstanding LTIP awards which will vest on the normal vesting dates, subject to the satisfaction of
performance conditions, with the awards pro-rated to his leaving date. Mr Kinsell also received the cash portion of his 2014 APP award and
the deferred share portion of his 2011 APP on the normal vesting date. Outstanding deferred awards under the 2012 and 2013 APPs lapsed,
and no APP award will be made in respect of 2015. The Remuneration Committee has reserved the right to determine that, prior to the
vesting of shares under each outstanding LTIP cycle, Mr Kinsell’s entitlement to shares under the LTIP will be forfeited in full if Mr Kinsell
commits a breach of his continuing post-termination contractual obligations. The relevant figures will be included in next year’s report.
Fixed pay
Salary: salary paid for the year (for Kirk Kinsell, who was paid in US dollars, this shows actual salary paid converted into sterling).
Benefits: this includes taxable benefits such as company car, healthcare, life cover and other taxable benefits. Provision during 2014
was in line with previous years and the approved DR Policy, and no exceptional benefits were paid.
Variable Pay
2014 APP
The weighting, measures and targets relating to the APP are determined by the Committee, on an annual basis, in line with our strategic
objectives. A combination of global and regional targets were used in 2014. Executive Directors with only global roles were subject to
global measures. Kirk Kinsell was subject to partly regional measures, reflecting his regional role as President, The Americas.
The measures for 2014 were determined in accordance with the DR Policy and were as follows:
• Guest satisfaction as measured by the Guest HeartBeat score: year-on-year improvement;
• Employee Engagement survey score: year-on-year improvement; and
• EBIT achievement against target (corporate and regional).
Why do we use these measures?
Guest HeartBeat score Employee Engagement survey score EBIT vs target
• Guest HeartBeat is part of the guest
satisfaction survey.
• It is an overall guest satisfaction score
relating to hotel visits.
• It is a robust measure of the strength
of our brands.
• Inclusion in the APP provides executive
focus on this key performance metric
at global and regional level.
• We measure employee engagement
because our brands are, effectively,
a promise by our people, as engaged
colleagues, to deliver a great guest
experience.
• Engaged employees are key to our
business.
• Our Employee Engagement survey is
a long-established tool in our business.
• EBIT is a key measure of business
performance for our shareholders.
• It is a function of other critical measures:
net rooms growth, RevPAR, operating
profit and fee revenues.
Award levels relate to achievement against target under each of the measures. The link between our strategy and the performance
measures of the APP is explained in more detail on page 79.
Threshold, target and maximum opportunity are shown on the graph on page 84, along with actual achievement on a global basis
and further detail.
The actual award level was determined on a straight-line basis between threshold and target, and target and maximum, and relates
to achievement vs target under each measure:
• Threshold is the minimum level that must be achieved for there to be an award in relation to that measure; for achievement below
this, no award is made.
• Target is the target level of achievement and results in a target award for that measure (115% of salary).
• Maximum is the level of achievement at which a maximum award for that measure is received (200% of salary).
Threshold award was subject to a global EBIT affordability gate such that:
• if global EBIT was below 85% of target, no award would be made; and
• if global EBIT was between 85% and 90% of target, half of any award relating to the Guest HeartBeat and/or Employee Engagement
survey measures would bemade.
83
STRATEGIC REPORT GOVERNANCE
GROUP FINANCIAL STATEMENTS
PARENT COMPANY FINANCIAL STATEMENTS
ADDITIONAL INFORMATION