Peachtree 2012 Annual Report Download - page 66

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It is my pleasure to present this year’s Remuneration Report for the year
ended 30 September 2012.
Remuneration overview
As stated in last year’s report, during the year the Remuneration
Committee commissioned a review of the short and long-term incentive
arrangements, to ensure that these continue to meet the needs of the
business and provide an appropriate and effective incentive to deliver
on the Group’s strategic objectives.
In addition, during the year management reviewed and realigned the
strategy of the business to accelerate organic revenue growth, drive
margins and improve EPS performance. This strategy was articulated
at the Investor Day held in July 2012.
I was delighted to be able to engage with many of our major investors
and representative bodies on the incentive changes proposed by the
Remuneration Committee in response to these strategic aims.
Following the extensive consultation, we have made a number of
changes to our remuneration framework to further align with the Group’s
strategic objectives.
Remuneration Report
Letter from the Chairman
Dear fellow shareholder
Key changes to the operation of the bonus plan for 2012/13 onwards are:
• Introduction of strategic performance measures.
• Simplication and extended scope of our deferral policy.
Key changes to the operation of the Performance Share Plan for 2012/13 onwards are:
• Introduction of an organic revenue growth performance measure and simplication of the measurement approach in respect of the
EPS and TSR performance measures.
• Reduction of the level of award that will be available for stretch performance (i.e. the level of vesting for meeting targets consistent
with the level of stretch under our 2011 framework) from 210% to 200%. Introduction of an additional 50% of base salary to reward
exceptional performance (i.e. for exceptional performance, the maximum award would be 250% of base salary; this would remain
within the overall Plan limit of 300% of base salary).
We have also extended our shareholding guideline policy to all members of our Executive Committee. Further details of the proposed
changes are set out on page 66.
Remuneration for 2011/12
For the year ending 30 September 2012, underlying pre-tax prot increased by 4%, organic revenue growth was 2% and the prot
underpin for annual bonus purposes was achieved; this resulted in annual bonus payments of between 26% and 30% of base salary for
the executive directors.
Performance share awards granted in 2010 are primarily based on EPS targets; these targets were not met during the year and therefore
no part of the awards will vest in March 2013.
Remuneration disclosure
We are committed to maintaining an open dialogue with shareholders.
We have made a number of improvements to the Remuneration Report this year and have sought to make our disclosure more
transparent. Notably we have added a single gure of remuneration for each executive director.
I hope that you nd the report clear and informative.
Ruth Markland
Chairman of the Remuneration Committee
64