Peachtree 2015 Annual Report Download - page 87

Bonus measure % weighting
Threshold
performance
Stretch
performance
Actual
performance
% of maximum
bonus payable
Underlying PBT 150% £321.9m
(6% of bonus payable)
£355.8m
(50% of bonus payable)
£339.7m 31%
Organic revenue growth230% 1.9%
(3.6% of bonus payable)
8.2%
(30% of bonus payable)
4.9% 17%
Strategic measures 20% The assessment of strategic measures was
disclosed on page 84 of the 2014 Annual Report
(Between 3% and 20% of bonus payable)
CEO: 7%
CFO: 9%
Total CEO 55% of maximum
bonus (69% of salary)
CFO 57% of maximum
bonus (71% of salary)
1 Underlying PBT is defined on page 84 of the 2014 Annual Report. Targets and actuals are stated at 2014 actual foreign currency exchange rates to facilitate comparison
with the published accounts.
2 Organic revenue growth is defined on page 38 of the 2014 Annual Report.
PSP awards
Awards granted under the PSP in 2013 vest depending on performance against three equally weighted measures, measured over three years:
– 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)
For each measure, three levels of performance are defined below, with straight-line vesting between each level of performance: target, stretch
and exceptional.
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)
20% of the award vests for the achievement
of target, with 80% of the award vesting for
the achievement of stretch
80% of the award vests for the achievement of
stretch, with 100% of the award for the achievement
of exceptional performance
The TSR vesting percentage may only exceed 80% (“Stretch” level) if performance against either the EPS target or the organic revenue growth
target is also at “Stretch” level.
Measure Achieved Vesting
EPS growth (CAGR) 11.4% 25% of award
Relative TSR 87th percentile 27%of award
Organic revenue growth (CAGR) 5.3% 13% of award
Total 64% of award
EPS and organic revenue growth have been calculated with revenue accounted for on the previous revenue recognition basis, which is consistent
with the basis that was used for seing targets at the start of the performance period. In the financial year 2015,Underlying EPS prior to the
accounting update was 25.21p. The Commiee determined that the margin underpin condition had been met, allowing the organic revenue
measure tovest. The reported underlying operating margin in 2012 was 27.3%, and in 2015 theunderlying operatingmargin on the previous
accounting basis was 27.5%, demonstrating an increase that permits vesting for the organic growth measures.
Neither Stephen Kelly nor Steve Hare was a participant in the 2013 grant under the PSP. 231,681of the 527,286 PSP shares awarded to Guy Berruyer
in 2013 will vest at the normal vesting date in 2016, providing that hedoes not take up an executive directorship, or engage in consulting or take
up a non-executive directorship at a competitor prior to the normal vesting date. As outlined on page 86, the number of vested shares has been
calculated based on both the performance assessment outlined above and the application of time pro-rating to reflect his period of employment
as a proportion of time elapsed between the grant date and the vesting date.
The Sage Group plc | Annual Report & Accounts 2015 85
FINANCIAL STATEMENTSGOVERNANCESTRATEGIC REPORT