Peachtree 2013 Annual Report Download - page 86

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Statement of implementation of remuneration policy in the following financial year
Appointment of the Chief Financial Officer
Steve Hare will join the Board as Chief Financial Officer on 3 January 2014. His remuneration package is set out below:
– Base salary – £480,000 per annum, subject to review in January 2015.
– Annual bonus – 75% of base salary for on-target performance and 125% of salary for maximum performance in line with current policy.
The performance measures for the year will be 80% based on profit (PBTA) and organic revenue growth, and 20% based on strategic objectives,
as per the policy for the CEO.
– Long-term incentives – he will be eligible to receive a PSP award equal to 250% of base salary in the year in line with our normal policy. The award
will be subject to performance conditions set at the time of grant and a three-year performance period. Leaver treatment for these awards will follow
the rules of the plan and our loss of office policy as set out in the policy report.
– Forfeited awards – he will be eligible to receive a one-off PSP award equal to 100% of base salary in recognition of awards forfeited from his previous
employment. This award will be subject to the same performance conditions as the PSP award mentioned above and leaver treatment will also
follow the rules of the plan and our loss of office policy.
– Benefits – provided in line with our policy.
– Pension – he will be provided with a Company contribution to the defined contribution plan of 25% of base salary. He will be eligible to receive some
or all of his pension allowance in cash if he elects to do so, in line with our pension policy.
– Shareholding guidelines – all executive directors are required to hold 150% of their annual salary in the Company’s shares. Until this requirement is
met, directors must defer 20% of their bonus into shares and retain (net of any shares sold to meet tax liability) 50% of shares vesting from deferred
bonus, PSP and exercise of options.
Components of remuneration
Effective from 1 January 2014, the base salary for the Chief Executive is £780,000.
The new CFO was appointed on a base salary of £480,000.
Pension and benefits are in line with benefits stated in the policy table.
There was no change in the maximum opportunity under our annual bonus plan. The performance measures remain 50% profitability (PBTA),
30% organic revenue growth and 20% strategic measures, unchanged from 2013. Targets are not disclosed because they are considered
by the Board to be commercially sensitive.
There was no change in the maximum PSP opportunity for our CEO and awards of 250% of base salary are expected to be made in 2014.
As in 2013, performance will be assessed against three equally-weighted, independently-measured metrics:
– 1/3 organic revenue growth with a margin underpin
– 1/3 EPS growth
– 1/3 relative TSR performance against the FTSE 100 (excluding financial services and extracting companies).
Targets will remain unchanged from 2013.
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)
20122012 2013 2013 2012 2013
Underlying PBT (£m) Returns to shareholders (£m) Total employee pay (£m)
+1%
+31% +1%
Ordinary dividends
Buyback
Ordinary dividends
Special dividends
Buyback
360.5357.0
136.5
299.8
198.7
122.1
251.0
617.2 621.9
Directors’ remuneration report continued
Directors’ annual remuneration report continued
84 The Sage Group plc | Annual Report & Accounts 2013