Peachtree 2015 Annual Report Download - page 86

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The actual target ranges for 2015 for the financial performance measures have not been disclosed as this is considered by the Board to be
commercially sensitive information, bearing in mind that many of our competitors are unlisted companies who do not provide this level of
disclosure. An indication of where actual performance fell within each range is given in the table below. Retrospective disclosure of the target
ranges will be made in next year’s Remuneration Report once the information is no longer considered commercially sensitive by the Board.
Bonus measure % Weighting Threshold Target Stretch Performance outcome as a % of maximum bonus
Underlying PBT 150 Achievement of £361.7m for FY15 was ahead of the target range, resulting in 61% of
the maximum bonus in relation to underlying PBT becoming payable.
Organic revenue
growth 2
30 Organic revenue growth was 6.7%, exceeding the commitment to deliver 6% in 2015,
and the underlying PBT underpin wasalsoexceeded, leading to 74% of the bonus relating
to the organic revenue growth measure becoming payable.
Strategic measures
(see table below)
20 Stephen Kelly’s achievement of strategic objectives for FY15 led to 72% of the bonus
relating to strategic measures becoming payable.
Steve Hare’s achievement of strategic objectives for FY15 led to 72% of the bonus relating
to strategic measures becoming payable.
Overall assessment Stephen Kelly received a bonus equal to 84% of salary (67% of the maximum). No bonus
was deferred into shares as the CEO has met the Company’s shareholding requirement
under the 2015 remuneration policy of 150% of annual salary.
Steve Hare received a bonus equal to 84% of salary (67% of the maximum). 20% was
deferred into Sage shares under the Company’s shareholding requirement of 150% of
annual salary.
1 Underlying PBT is defined on page 163 It has been calculated with revenue accounted for on the previous accounting basis, which is consistent with the basis that was used
for seing targets at the start of the year.
2 Organic revenue is defined on page 163.It has been calculated with revenue accounted for on the previous accounting basis, which is consistent with the basis that was used
for seing targets at the start of the year.
Executive directors’ personal strategic objectives
CEO measures CFO measures
Organisational capability
Increase organisational capability andsuccession planning, and execute
improvement planswhilst completing material elements of the 2012 strategy
Organisationalefficiencies
Achieveorganic revenue growth and operating margin whilst driving
operational efficiencies
Global product leadership
Increase Sage One paying subscribers worldwide andgrow the
enterprise business
Risk management framework
Implementation of arisk management framework plan to theAudit and
Risk Commiee’ssatisfaction
Improve customer satisfaction
Improvement demonstrated incustomer retention andsubscription rates,
and colleague engagement during transition year
Sage One
Increasepaying subscribersworldwide
Bonus for Guy Berruyer
As noted in the 2014 annual remunerationreport, Guy Berruyer is entitled to a bonus for the period 1 October to 5 November 2014. Given the short
period of time between the beginning of the financial year and Guy Berruyer’s stepping downas CEO, the Commiee determined that no bonus will
be paid to him in respect of the financial year ending 30 September 2015.
Disclosure of 2014 bonus targets
The target ranges for financial measures used to determine the 2014 bonus were not disclosed in last year’s Annual Report & Accounts as this was
considered by the Board to be commercially sensitive information. Last year’s Report also stated that it was intended for retrospective disclosure
to be made aer a period of three years (i.e. in the 2017 Annual Report & Accounts). The Board has since reviewed this issue and agreed that this
information is commercially sensitive for a shorter period than previously determined. Accordingly, the policy for retrospective disclosure of bonus
financial targets has been accelerated so that disclosure will be aer a period of one year. The table below therefore sets out the target ranges for
the financial measures that were used to determine the 2014 bonus.
Directors’ remuneration report continued
Directors’ annual remuneration report continued
The Sage Group plc | Annual Report & Accounts 2015
84