ANNUAL REPORT 2001 - Prudential plc

REMUNERATION REPORT
CONTINUED
Directors’ Long-term Incentive Plans continued
Details of awards under other long-term incentive schemes are set out below:
Michael McLintock – long-term awards
To reflect his role as Chief Executive of M&G, Michael McLintock also participates in a long-term incentive plan designed to provide a
cash reward based on the economic and investment performance of M&G over a three-year period. Awards under the plan are made
in the form of phantom share options and phantom restricted shares, vesting at the end of the performance period.
He held awards for the year 2001 with face values of £225,000 in phantom restricted shares and £367,800 in phantom share options.
Mark Tucker – long-term awards
To reflect his role as Chief Executive, Prudential Asia, Mark Tucker also participates in a cash-based long-term incentive plan that
provides rewards in respect of the Group’s Asian operations. This plan is designed to provide reward contingent upon the rate of
growth in value of those operations over a three-year period. The threshold performance criteria under the plan is that the growth in
value must be greater than 15 per cent per annum over the period. Any payment for performance above threshold is made following
the end of the performance period. The on-target payout is 100 per cent of basic salary at the beginning of the period, for which an
annual growth rate of 35 per cent is required. The payment for the 1999 award is included in the Directors’ Remuneration table.
Mark Wood – share awards and long-term awards
In order to secure the appointment of Mark Wood, on joining Prudential he was granted Prudential plc share awards expected to be
released as follows: 71,569 shares (31 July 2002), 15,080 shares (31 July 2003) and 31,672 shares (31 December 2003).
In addition, to reflect his role as Chief Executive UK & Europe, Mark Wood also participates in a long-term incentive plan designed to
provide reward contingent upon the rate of growth in appraisal value of UK and Europe over a three-year period. The threshold
performance criteria under the 2001 plan is that the growth in appraisal value must be greater than eight per cent per annum over the
period. Any award above threshold performance is made following the end of the performance period. The on-target payout is 75 per
cent of basic salary at the end of the period, for which an annual growth rate of 11.5 per cent per annum is required.
Directors’ Shareholdings
As a condition of serving, all executive and non-executive directors have been required to hold 2,500 shares in the Company. These
shares must be acquired within two months of appointment to the Board if the director does not own that number upon appointment.
As stated above, non-executive directors also use a proportion of their fees to purchase additional shares in the Company on a
quarterly basis.
The interests of directors in shares of the Company are shown below. These interests include shares awarded under the Share
Participation Plan (the previous annual incentive plan) and the share awards made to Mark Wood on appointment. In addition,
interests include rights granted under the 1997 and 1998 Restricted Share Plan where the executive has yet to exercise his right to
receive shares. Awards that remain conditional under the Restricted Share Plan are excluded. All interests are beneficial except nonbeneficial
interests in 6,300 shares in respect of Philip Broadley and in 9,875 shares in respect of Sandy Stewart.
1 Jan 2001* 31 Dec 2001
Sir David Barnes 3,971 4,778
Keith Bedell-Pearce 144,654 178,289
Jonathan Bloomer 112,947 152,623
Philip Broadley 10,722 10,381
Ann Burdus 2,938 3,844
Sir Roger Hurn 10,000 10,000
Michael McLintock 2,820 3,884
Roberto Mendoza 2,765 3,444
Rob Rowley 2,799 3,680
Sandy Stewart 9,025 13,533
Mark Tucker 134,713 174,150
Mark Wood 2,550 120,900
* Or date of appointment if later.
Clark Manning held 2,500 shares at the date of his appointment as a director on 2 January 2002.
Interests of directors in shares of the Company’s listed subsidiary, Egg plc, are shown below:
1 Jan 2001 31 Dec 2001
Keith Bedell-Pearce 1,410 1,410
Jonathan Bloomer 470 470
Philip Broadley 470 470
Roberto Mendoza 200,000 200,000
Rob Rowley 940 940
Philip Broadley is connected to a not-for-profit organisation which disposed of 1,400 shares, 900 shares, 700 shares and 3,300 shares
of the Company on 3 January, 18 January, 25 January and 28 February 2002 respectively. He had no beneficial interest in such shares.
He acquired 1,038 shares of the Company, held beneficially, on 26 February 2002. With these exceptions, there were no changes in
interests between 31 December 2001 and 6 March 2002.
30 Prudential plc Annual Report 2001