Peachtree 2013 Annual Report Download - page 84

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For each measure, three levels of performance are defined below, with straight-line vesting between each level of performance: Target, Stretch
and Exceptional.
The performance targets applying to the award granted during the financial year are:
Measure Between target and stretch Between stretch and exceptional
EPS growth (CAGR) Between 6% and 12% Between 12% and 15% (or above)
Relative TSR Between median and upper quartile Between upper quartile and upper decile (or above)
Organic revenue growth (CAGR) Between 4% and 8% Between 8% and 10% (or above)
As outlined in the policy table, awards are made in shares and the number of shares is determined based on a percentage of base salary. The following
table sets out details of awards of conditional shares made during the year under the PSP.
Amount vesting
Date of award Face value
Threshold performance
(% of face value)
Maximum performance
(% of face value)
End of
performance period
CEO 14 March 2013 250% of salary 20% 100% 30 September 2015
CFO 14 March 2013 250% of salary 20% 100% 30 September 2015
The face value has been calculated using the share price the day before the day of grant of 342p.
These awards vest on the third anniversary of the date of award. Paul Harrison’s award lapsed on cessation of employment.
Loss of office payments
No payments for loss of office were made to past directors during the year. No payments have been made that have not already been included in the
single figure of remuneration set out earlier in this report.
Remuneration for the departed Chief Financial Officer for 2013
Paul Harrison left the Group on 16 August 2013. He received a base salary, benefits and pension contributions to the date of cessation. In addition,
in view of his contribution during the year to mid-August, and his commitment to the Group over 16 years, 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. All of Paul Harrison’s outstanding share
awards lapsed on cessation of employment.
Change in remuneration of Chief Executive compared to Group employees
The table below sets out the increase in total remuneration of the Chief Executive and that of our UK management population.
We have selected our UK management population (around 1,200 people) for this comparison because it is considered to be the most relevant, due
to the UK employment location and the structure of total remuneration – most of our management are able to earn an annual bonus as well as receiving
a base salary.
% change in base salary
2012 to 20131
% of target bonus earned
2012
% of target bonus earned
2013
% change in bonus
2012 to 2013
% change in benefits
(including pension)
2012 to 20131
Chief Executive 1.5% 35% 120% 245% 1.0%
UK management population 2.8% 66% 100% 52% 3.7%
Notes:
1 The increase in the Chief Executive’s bonus year-on-year reflects the higher volatility in the performance-related elements of his reward package compared to that
of the rest of the UK management population. To illustrate, the bonus payment for the Chief Executive in 2012 represented 35% of target opportunity, whereas for the UK
management population the payment for the same year was 66% of target. UK management bonuses are based partly on personal performance.
Directors’ remuneration report continued
Directors’ annual remuneration report continued
82 The Sage Group plc | Annual Report & Accounts 2013