Annual report 2005 - Xeikon

9
REMUNERATION REPORT
Introduction
The Remuneration Committee deals with all aspects
of remuneration of the executive directors and certain
other senior executives. The committee reporting to the
Board is composed of Ken Humphreys, Geoffrey White,
Nigel McCorkell, all non executives, and is chaired by
Ken Humphreys.
The Committee is responsible for:
• Establishing and recommending to the Board the
policy for executive remuneration;
• Determining on behalf of the Board and shareholders
the level and structure of the remuneration packages
of the executive directors and selected senior
executives; and
• Reviewing and ensuring the alignment of executive
remuneration throughout the organisation, including
company share schemes.
During the reported year, the committee received advice
and was assisted by the Hay Group - a global company
providing a range of HR services to companies - on
training, evaluation and salary levels.
Policy
The Remuneration Committee aims to ensure the
packages offered are competitive and designed to
attract, retain and motivate executive directors of the
highest calibre. The committee seeks to reward the
delivery of challenging targets over the long term
for both growth and profitability. A base salary,
a bonus scheme and a Long Term Incentive Plan (shares),
are designed to ensure the delivery of best-in-class
performance and align interests of shareholders
and executives.
Packages
The basic salary is set using external market data
for similar jobs in companies of comparable size
and complexity.
Incentives scheme
The executive directors participate in an annual cash
bonus scheme which is designed to reward the
delivery of challenging business targets, growth,
profitability, cash and individual personal targets. The
Committee ensures that these are aligned with
shareholders interests. The maximum bonus achievable
for the CEO is 50% of salary and for the CFO 30%
of salary.
Long Term Incentive Plan
The Long Term Incentive Plan (hereafter LTIP) is intended
to offer an effective incentive over the longer term to
executive directors and certain other senior executives.
Further details of the LTIP can be found in the company’s
admission document.
The LTIP plan was adopted by the company on April 28,
2005. The LTIP plan allows the Board to grant awards
of shares in the company to employees of Punch
Graphix group companies or to service companies
the Board determines to be eligible for such grant.
The total number of new ordinary shares that may be
issued pursuant to the LTIP over a 10 year period may
not exceed five percent of the total share capital of
the company.
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