Peachtree 2013 Annual Report Download - page 82

Additional disclosures for single figure for total remuneration table
Base salary
2013
Base salaries were increased by 1.5% from 1 January 2013; this is
a similar level of increase as was awarded for 2012 and reflects
the level of salary budget increases in our key employment markets.
2012
Base salaries were increased by between 1.5% and 3% from
1 January 2012 in line with the wider employee population.
Benefits
2013
The benefits provided to the executive directors included: car benefits
(or cash equivalent), private medical insurance, housing allowance,
permanent health insurance, life assurance and financial advice.
2012
The benefits provided to the executive directors included: car benefits
(or cash equivalent), private medical insurance, permanent health
insurance, life assurance and financial advice.
Annual bonus
2013
For 2013 the bonus for executive directors was based on 50%
profitability (PBTA) targets, 30% on organic revenue growth (with PBTA
underpin) and 20% on strategic measures. The actual target range has
not been disclosed as this is considered by the Board to be commercially
sensitive information.
As highlighted in the opening letter, Sage showed strong financial
performance in the year, with good growth across all regions, and our key
strategic initiatives progressing well. Group PBTA performance
during the year was robust with achievement of £360.5m for
2013. This was just ahead of the target range, resulting in 76% of the
bonus relating to PBTA becoming payable. In a challenging market
environment, organic revenue growth was 4%, within the target range;
the profit underpin was exceeded, leading to 65% of the bonus relating
to the organic revenue growth measure becoming payable.
Guy Berruyer and Paul Harrison achieved or partially achieved their
strategic objectives for 2013, which led to 74% and 44% of the bonus
relating to strategic measures becoming payable, respectively. Notably,
achievements against strategic measures included driving actions to
improve Net Promoter Scores throughout the business, pricing strategy,
investing in cloud product strategy, improving cloud
unit sales and product portfolio management.
Overall, this resulted in the Chief Executive receiving a bonus equal
to 72% of the maximum for the year (90% of salary); the CFO received
a bonus equal to 66% of maximum for the year (83% of salary).
None of the bonus for the year was deferred because both
Guy Berruyer and Paul Harrison had already met the shareholding
requirement in full.
2012
The annual bonus for the year was based 55% on profitability (PBTA)
targets and 45% on organic revenue growth (with PBTA underpin).
Executives achieved between threshold and target performance;
this resulted in 21% of the maximum bonus opportunity paying out
for Guy Berruyer and Paul Harrison. The actual target range has not
been disclosed as this is considered by the Board to be commercially
sensitive information. None of the bonus for the year was deferred.
Single figure for total remuneration (audited information)
The following table sets out the single figure for total remuneration for Directors for the financial years ended 30 September 2012 and 2013.
(a)
Salary/fees
£’000
(b)
Benefits
£’000
(c)
Bonus1
£’000
(d)
PSP awards2
£’000
(e)
Pension
£’000
Total
£’000
Director 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
Executive Directors
G S Berruyer3719 708 120 125 651 186 ––180 177 1,670 1,196
P S Harrison4389 435 15 20 321 114 ––97 109 822 678
Non-executive Directors
D H Brydon 360 38 ––––––––360 38
R Markland 87 78 ––––––––87 78
N Berkett 15 –––––––––15 –
J Harlow ––––––––––––
J Howell 23 –––––––––23 –
T Ingram 49 55 ––––––––49 55
I Mason 59 55 ––––––––59 55
M E Rolfe 76 72 ––––––––76 72
Notes:
1 Bonus payable in respect of the financial year including any deferred element at face value at date of award. Further information about how the level of 2013 award was
determined is provided in the Additional disclosures section below.
2 The 2013 PSP value is based on the PSP award due to vest in March 2014. The value of the award is based on performance to 30 September 2013. Further information about
the level of vesting is provided in the Additional disclosures section below.
3 Benefits in relation to Guy Berruyer comprise a housing allowance (£100,000 per annum) and a car allowance.
4 Paul Harrison left the Group on 16 August 2013 and received base salary, benefits and pension contributions to the date of cessation. In addition, he received a bonus payment
in respect of the year based on performance to the end of the year. The payment was pro-rated for time to cessation.
Directors’ annual remuneration report
80 The Sage Group plc | Annual Report & Accounts 2013