Peachtree 2015 Annual Report Download - page 80

Alignment with strategy/purpose Operation Maximum opportunity Performance measures
Annual bonus
Rewards and incentivises the
achievement of annual financial
and strategic targets.
An element of compulsory
deferral provides a link to
the creation of sustainable
long-term value creation.
Measures and targets are set annually
and payout levels are determined by the
Remuneration Commiee aer the year-end
based on performance against those targets.
The Remuneration Commiee may, in
exceptional circumstances, amend the
bonus payout should this not, in the view
of the Commiee, reflect overall business
performance or individual contribution.
A minimum ofone-third of any annual bonus
earned by executive directors is delivered in
deferred share awards, with the remainder
delivered in cash. The length of the deferral
period will be determined by the Remuneration
Commiee before the grant of anaward.
125% of salary. – 80%of the bonus will be
determined by measure(s) of
Group financial performance.
– 20%of the bonus will be
based on pre-determined
financial, strategic or
operational measures
appropriate to the individual
director.
The measures that will apply
for the financial year 2016 are
described in the Directors’
annual remuneration report.
Performance Share Plan (PSP)
Motivates and rewards the
achievement of long-term
business goals.
Supports the creation of
shareholder value through
the delivery of strong market
performance aligned with the
long-term business strategy.
Supports achievement
of our strategy by targeting
performance under our key
financial performance indicators.
Awards vest dependent upon the achievement
of performance conditions measured over a
period of at least three years.
Following the end of the performance period,
the performance conditions will be assessed
and the percentage of awards that will vest
will be determined.
The Commiee may decide that the shares in
respect of which an award vests are delivered to
participants at that point or that awards will then
be subject to an additional holding period before
participants are entitled to receive their shares.
A holding period will normally last for two years,
unless the Commiee determines otherwise.
The Remuneration Commiee has discretion
to decide whether and to what extent the
performance conditions have been met, and
if an event occurs that causes the Commiee
to consider that an amended or substituted
performance condition would be more
appropriate and not materially less difficult
to satisfy, the Commiee may amend or
substitute any performance condition.
Awards vest on the following basis:
– Target performance: 20% of the
maximum shares awarded
– Stretch performance: 80% of the
maximum shares awarded
– Exceptional performance: 100%
of the shares awarded
With straight-line vesting between
each level of performance.
Current annual award levels (in respect
of a financial year of the Company)
for executive directors are 250% of
base salary at the time of grant.
Overall individual limit of 300% of
base salary under the rules of the plan.
The Commiee retains the discretion to
make awards up to the individual limit
under the PSPand, as stated in previous
remuneration reports, would expect
to consult with significant investors if
awards were to be made routinely above
current levels.
Performance is assessed
against two independently-
measured metrics which
are equally weighted:
– 50% recurring revenue
growth
– 50% relative TSR
performance against the
FTSE 100 (excluding financial
services and extracting
companies)
At its discretion, the Commiee
may elect to add additional
underpin performance
conditions to one or both
of the above metrics.
Details of the targets that will
apply for awards granted in 2016
are set out in the Directors’
annual remuneration report.
All-employee share plans
Provides an opportunity for
directors to voluntarily invest
in the Company.
UK-based executive directors are entitled to
participate in a UK tax-approved all-employee
plan, The Sage Group Savings-Related Share
Option Plan, under which they make monthly
savings over a period of three or five years linked
to the grant of an option over Sage shares with
an option price which can be at a discount of
up to 20% of the market value of shares on grant.
Options may be adjusted to reflect the impact
of any variation of share capital.
Subject to shareholder approval at the 2016
AGM, an overseas-based executive director
would be entitled to participate in any similar
all-employee scheme operated by Sage in
their jurisdiction.
UK participation limits are those set by
the UK tax authorities from time to time.
Currently this is £500 per month. Limits
for participants in overseas schemes
would be determined in line with any
local legislation.
None.
Directors’ remuneration report continued
Directors’ remuneration policy report continued
The Sage Group plc | Annual Report & Accounts 2015
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