Thorn-EMI 1995 Annual Report

32. Directors' and employees' emoluments and Directors' lnterests continued
(v) | G Fifield (President and Chief Executive Offlcer, EMI Music) - except
where otherwise stated, the US$/!sterling conversion rate used below is the average exchange
rate for the appropriate year.
Base Salary and Benefits
Mr Fifield's base salary is US$3,000,000 ot 81,923,O77 (1994: 11,986,755) which was fixed on
1 April 1993 to apply until 3l March 1996. He also receives a cash allowance in lieu of a company
car, and he and (where applicable) his family are covered by the US life, disability and health
insurance plans. In the year these, together with sundry benefits, had a total taxable value of
US$181,285 or f116'208 (1994: t118,520).
Incentive Remuneration
(a) Earned
During the year Mr Fifield earned a cash bonus under the EIP of US$3,000,000 or fl'923'O77
(1994 tr,986,755).
He also earned a bonus for the three-year LTIP cycle ended 31 March 1995 (cycle 4) of
US$4,158.000 or f2,665,385 (cycle 3: f3,059,603).
These incentives, equal to 700/0 of total earnings (base salary plus these incentives), were
earned because EMI Music's proftt after notional interest for 1994l95 and the three-year period
to 31 March 1995 were lllo/o and 1050/o of the respective targets set by the Committee.
(b) Accrued
A further amount was accrued for the two current LTIP cycles which will provide potential
awards ofshares r:.1995/96 and 1996197 subject to the proflt performance of EMI Music over
the three-year periods ending 31 March 1996 (cycle 5) and 3l March 1997 (cycle 6) respectively.
The shares awarded will be 113,200 (for cycle 5) and 94,800 (for cycle 6) if the Profrt Target for
the cycle is achieved, increasing to 169,800 (for cycle 5) ar'd 142,200 (for cycle 6) if the
Maximum Profit Target for the cycle is exceeded. These awards are granted under the terms oF
the LIIP, summarised on page 67
Executive Share Pur(hase OPtion
Under the Executive Share Purchase Option, so as to encourage the further alignment of
Mr Fifield's interests with those of the shareholders, the value of share awards purchased by
Mr Fifreld with cash bonuses under the EIP or LIIP cycles 3 and 4 will be increased by onequarter
provided the awards are deferred for at least three years. The share equivalent of
dividends which would have been paid on the shares is added during the deferral period and,
provided these dividend equivalents are themselves deferred for three years, their value will also
be increased by one-quarter. To date, Mr Fifield has elected to use a total ofUS$2,500,000 to
purchase deferred share awards as follows:
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