Thorn-EMI 1995 Annual Report

Notes to the accounts
32. Directors' and employees' emoluments and Directors, interests continued
(iv) Sir Colin Southgate (Chairman and highest paid UK-based Diredor)
Base Salary and Beneflts
Sir Colin Southgate's base salary is f505,000 (increased from f460,000 with eflect from l July
1994, his previous increase having been on l January 1992). Including Profit-Related pay (paid to
all THORN EMI plc employees) his total base salarv during the year was t494,451 (1994:
f450,399). He is also provided with a fully-expensed company car, a car phone and a driver, and
he and his family are covered by the uK medical insurance plan. In the year these benefits had a
total taxable value of fl5,O37 (1994: Lt3,948).
ln(entive Remunetation
For the 1994/95 year onwards, the committee decided to adjust Sir colin Southgate's specific
awards under each of the SEIP annual and longer-term elements to be equal in value to 250/o of
base salary if the Target Profit is achieved increasing to a maximum of 500/o of base sararv if the
Maximum Profrt target is exceeded.
(a) Year to 31 March 1995
During the year Sir Colin Southgate earned a SEIp annual bonus equal in value to f202,O00
(1994: f110'630), payable as a share award which, at his request, is being deferred. The number of
shares will be based on the market share price after the award has been confrrmed by the
Committee (expected to be in June 1995).
He also earned a SEIP longer-term bonus equal in value to f202,000 (1994; f110,630)
payable as a deferred share award, as above, which vests only on the achievement of a further
performance target.
These incentives, equal to 450/o of total earnings (base salary plus these incentives), were
earned because the Group's 1994/95 profit belore tax was 1060/o of the Target set by the Committee.
(b) Preaiors 1,ears
sir colin southgate's 1993/94 sErP annual bonus (included within his reported emoluments for
the year ended 3l March 1994), payable as an award of10,63g shares is, at his request, being
delerred for at least three years, subject to which its value will be increased by one_third, to
14,184 shares. His 1993/94 sEIP longer-term bonus, payabre as an award of 10,63g shares, is being
deferred for at least three years and vests subject to achievement of a further performance target.
All of the awards in (a) and (b) above are granted under the terms of the sEIp. summarised
on page 67
Share Options and Share Appre(iation Rightj (,,SARs,,)
Full details ofSir Colin Southgate's Share Options and SARs are reported in section (vi) (b) and
(c) of this Note.
Retirement Benefits
The UKTHORN EMI Pension Fund will provide Sir Colin Southgate with a pension of
two-thirds ofhis final year's base sarary on his retirement. He contributes at the rate of 4olo of
base salary with effect from April 1995. During the year the Company contributed €nil (1994:
fnil) to the Fund in respect ofsir colin southgate (due to its continuing contribution horidav
arising from the surplus in the Fund).