Peachtree 2015 Annual Report Download - page 82

Illustration of our remuneration policy for 2016
The charts below set out an illustration of the remuneration policy and include base salary, pension, benefits and incentives. The charts provide
an illustration of the proportion of total remuneration made up of each component of pay and the total potential value available to the directors
under the policy. The charts do not take into account share price appreciation or dividends.
In these illustrative charts, salaries are those applying from 1 January 2016, pension provision is assumed to be 25% of salary and benefits have
been estimated using the figure included in the 2015 single figure of remuneration.
For illustrating the potential value from incentives, four scenarios have been illustrated for each executive director:
Below threshold performance – No bonus payout
– No vesting of PSP awards
Target performance – 37.5% of salary payout in annual bonus (30% of maximum opportunity)
– Shares equivalent to 50% of salary vesting under the PSP (20% of total shares available)
Stretch performance – 81.25% of salary payout in annual bonus (65% of maximum opportunity)
– Shares equivalent to 200% of salary vesting under the PSP (80% of total shares available)
Exceptional performance – 125% of salary payout in annual bonus (100% of maximum opportunity)
– Shares equivalent to 250% of salary vesting under the PSP (100% of total shares awarded)
Development of our remuneration policy
Consistency with remuneration for the wider Group
The remuneration policy for our executive directors is designed in
line with the remuneration philosophy and principles that underpin
remuneration for the wider Group. The remuneration arrangements
for employees below the main Board reflect the seniority of the role
and local market practice and therefore the components and levels
of remuneration for different employees will differ from the policy for
executives as set out above.
Consideration of pay and conditions for the wider Group
The Remuneration Commiee generally considers pay and employment
conditions elsewhere in the Group when considering pay for the main
Board directors and the Executive Commiee. When considering
base salary increases, the Commiee reviews overall levels of base
Salary Pension Other benefits Annual bonus (including any deferred amounts) PSP award
CEO policy
500,000
£0
£1,000,000 £1,500,000 £2,000,000
5 1 25
24
20
6 1
47 12 1
78 20 2
17 23 9
20 49 18
49
£1,008,000
£1,699,000
£3,970,000
£3,229,000
Exceptional (%)
Stretch (%)
Below
threshold (%)
Target (%)
CFO policy
20 5 1 25 49
24 6201
46 12 172
78 19 3
23
49
£657,000
£1,102,000
£2,566,000
£2,089,000
Exceptional (%)
Stretch (%)
Below
threshold (%)
Target (%)
£2,500,000 £3,000,000 £3,500,000 £4,000,000
500,000
£0
£1,000,000 £1,500,000 £2,000,000 £2,500,000 £3,000,000 £3,500,000 £4,000,000
pay increases offered to other employees and other executives of the
major geographies in which we operate. The Commiee also reviews
information with regard to bonus payments and share awards made
to management of the Group.
Communication with our shareholders
The Remuneration Commiee is commied to an on-going dialogue
with shareholders and seeks the views of significant shareholders
when any major changes are being made to remuneration
arrangements. The Commiee takes into account the views
of significant shareholders and shareholder representative bodies
such as ISS and the Investment Association when formulating and
implementing the policy. A consultation process was undertaken
with our largest shareholders ahead of the introduction of the
new PSP at the 2015 AGM and also ahead of the introduction
of this revised policy.
Directors’ remuneration report continued
Directors’ remuneration policy report continued
The Sage Group plc | Annual Report & Accounts 2015
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