Performance bonus
The table sets out:
- Maximum Bonus Potential for Executive Directors for 2007.
- Maximum Bonus Potential for Executive Directors for 2008.
- The Bonus Targets applying for both 2007 and 2008.
The earnings per share growth target is set out below. EPS figures are based upon the Company’s adjusted figures under IFRS. In respect of 2007 the EPS growth shown in the audited accounts was 26.3% giving rise to Executives being entitled to 85.4% of the maximum potential bonus subject to this target.
% Earnings per Share |
% Bonus Payable |
Growth Inclusive of RPI |
for EPS Element |
5 |
14.00 |
6 |
23.10 |
7 |
28.70 |
8 |
34.30 |
9 |
39.90 |
10 |
45.50 |
11 |
47.95 |
12 |
50.40 |
13 |
52.85 |
14 |
55.30 |
15 |
57.75 |
16 |
60.20 |
17 |
62.65 |
18 |
65.10 |
19 |
67.55 |
20 |
70.00 |
21 |
72.45 |
22 |
74.90 |
23 |
77.35 |
24 |
79.80 |
25 |
82.25 |
26 |
84.70 |
27 |
87.15 |
28 |
89.60 |
29 |
92.05 |
30 |
94.50 |
31 |
96.95 |
32 |
99.40 |
32.2 |
100.00 |
% Maximum Bonus Potential |
% of Maximum Bonus subject to each Target 2008 |
||||||
| Executive | 2007 |
2008 |
EPS Target |
Divisional & Individual Targets |
|||
2008 |
2007 |
2008 |
2007 |
||||
| Chief Executive | 100 |
100 |
100 |
||||
| Finance Director | 80 |
80 |
50 |
75 |
50 |
25 |
|
| Executive Directors | 80 |
80 |
50 |
75 |
50 |
25 |
|
Long-term incentives
The following table and paragraphs summarise the operation of the Company’s LTIP:
| Executive | 2004 Grant % of Salary / Condition |
2005 Grant % |
2006 Grant % of Salary / Condition |
2007 Grant % of Salary / Condition |
| Maximum Annual Grant | 100 |
100 |
100 |
100 |
| Chief Executive | 100 |
80 |
80 |
100 |
| Finance Director | 75 |
60 |
60 |
80 |
| Executive Directors | 75 |
60 |
60 |
80 |
| Performance Condition | Comparative Total Shareholder Return | EPS Growth (see table below) | EPS Growth (see table below) | EPS Growth (see table below) |
| Status | Released on 1 September 2007 as upper quartile TSR performance achieved over the performance period (see table below) | Release Date 16 May 2008 | Release Date 30 March 2009 | Release Date 14 March 2010 |
100% of the shares subject to the first grant were released on 1 September 2007.The following shares were awarded at the grant price of £1.235:
| Name | Number of ordinary shares |
| Alan Hearne | 251,012 |
| Gary Young | 91,093 |
| Andrew Troup | 106,275 |
| Peter Dowen | 103,239 |
The market price of the shares was £3.708.
The Remuneration Committee reviews on an annual basis the current share incentives in respect of:
- their operation;
- the grant levels; and
- the performance criteria
in order to ensure that what has been approved by shareholders remain appropriate to the Company’s current circumstances and prospects.
The performance conditions attached to the release of LTIP shares related to EPS growth is as follows:
% Average Basic EPS Growth p.a. above RPI |
% of LTIP Award Released |
3 |
12.5* |
4 |
25* |
5 |
37.5* |
6 |
50* |
7 |
62.5* |
8 |
75* |
9 |
87.5* |
10 |
100* |
* There will be straight line release between these points.
The Remuneration Committee will determine the satisfaction of the performance conditions in respect of both the LTIP and historic options.The EPS figure used by the Company will be the audited basic EPS figure disclosed in the Company’s Financial Statements.