Annual Report and Accounts - Hemscott IR

More documents

Recommendations

Info

Directors’ Remuneration Report Remuneration in 2012 Annual bonus The performance measures were the same as for 2011. The targets and results are as follows: Measure Weighting Target range Achieved EPS 50% 95% - 105% 15% ROCE 30% 95% - 105% Nil Personal objectives * 20% 0% - 20% 12% * The evaluation of personal objectives involved the Remuneration Committee considering personal development and performance by the Executive Directors on a balanced scorecard of measures, including the following main topics: • Market outperformance; • Risk monitoring; • Health and safety; • Integration of BSS; • Global sourcing initiatives; • Category management capability; • Supply chain optimisation; • Succession. The Remuneration Committee assessed the specific achievements against these objectives by reviewing the detailed measures attached to each one as well as reviewing the performance of each director overall. More detail on the specific achievements and shortfalls was described earlier in the Remuneration Report. The annual bonus for each of the executive directors is as follows: % bonus Full bonus cash bonus Deferred in shares John Carter 27% £135,000 £101,250 33,750 Geoff Cooper 32.4% £211,312 £158,484 52,828 Paul Hampden-Smith 27% £105,867 £79,400 26,467 Long term incentives This is the first time for five years where all employees participating in share plans have been able to share in the Group’s success through achieving stretching performance targets and delivering increased shareholder value. Performance share plan The targets set in 2009 were met partially and 80.0% of the awards vested in 2012. This is the first time such awards have vested in the last five years. Share matching scheme There was full vesting of the awards made in 2009. This is the first full vesting of these awards in the last five years. All employee share plans Over 1,300 colleagues shared a pay-out of approximately £6m under the Sharesave scheme. None of the executive directors received this benefit as their savings and share options under the scheme do not mature until December 2013. Remuneration for 2013 As described above, the only significant change to the remuneration structure is the Replacement Deferred Share Bonus Plan. Full details of the new scheme are set out in a separate resolution 14. Basic salaries Basic salaries are reviewed annually for each director and are normally set with reference to individual performance, experience and contribution together with developments in the relevant employment market, internal relativities and reference to the general economic environment; it is this last point which has outweighed all others in determining pay awards for 2013. 68
TRAVIS PERKINS ANNUAL REPORT AND ACCOUNTS 2012 From 1 January 2013, the executive directors’ salaries remain unchanged from 2012: • John Carter £500,000; • Geoff Cooper £652,200; • Paul Hampden Smith £392,100. As described in the introduction to this report, the position will be reviewed in July 2013, but any increase at that time will not exceed 1.5% and will not be backdated. Annual bonus As described in detail above, the executive directors will participate in the Replacement Deferred Share Bonus Plan. The maximum award will be 180% for the CEO and 150% for the other executive directors. 50% of the full bonus will be paid in cash after the year end and the remainder will be held in shares deferred for at least 2 years and subject to a total shareholder return target. The new plan will be extended to the Executive Committee members in 2014. Performance share plan The maximum award levels will be 150% of basic salary for each of the executive directors. The performance targets will again be Aggregate Cashflow, Relative Total Shareholder Return (‘TSR’) and adjusted Earnings per Share (‘EPS’) with the same relative weighting as last year. Measure Rationale Weighting EPS growth A reasonable and well understood proxy for an increase in shareholder value for the benefit of all shareholders, provided undue leverage is controlled. 40% Aggregate cashflow Reinforces importance of cash generation at a time when the Group wishes to reduce the financial leverage taken on in respect of acquisitions. 40% Relative TSR External measure of shareholder value. 20% Measure Target Detail Range EPS growth RPI + 3% p.a. 30% vests RPI + 10% p.a. 100% vests Straight-line between these points Aggregate cashflow over Three aggregate cash flow targets £766.7m - £847.4m three years up to 2015 No vesting below lower target Straight line increase until full vesting at upper target Company TSR relative to Upper (top 50%) 30% vests FTSE 50 - 150 Index Upper quartile (top 25%) 100% vests Straight-line between these points GOVERNANCE The earnings per share targets are calculated on a compound annual basis and include the increase in the Retail Prices Index (‘RPI’). Increases in RPI have been well above 3% in recent years and the outlook remains uncertain. If RPI reduces to average 3% over the next 3 years, the aggregate EPS growth will have to be 44% in 3 years time for this part of the award to vest in full. Given the current economic climate, this would represent an outstanding achievement. The three-year targets for aggregate cash flow and CROCE below reflect a poorer market outlook for construction than the prior year. However, the targets require a more stretching performance when taken into account as part of the 3 year rolling forecast targets. Share matching scheme Once again the maximum investment will be 50% of post-tax salary and the other features of the scheme will also be unchanged. The performance target will be Cash Return on Capital Employed (‘CROCE’). Measure Rationale Range matching ratio CROCE Reinforces importance of cash generation and 0.6 for 1 Return on capital employed 8.68% - 9.60% 2 for 1 Straight-line between the two 69
Page 1 and 2:
TRAVIS PERKINS PLC Travis Perkins T
Page 3 and 4:
T R A V I S P E R K I N S A N N U A
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17:
Page 20 and 21: Chairman’s Statement FOR THE YEAR
Page 22 and 23: Chief Executive’s Review of the Y
Page 24 and 25: C H I E F E X E C U T I V E ’ S R
Page 30 and 31: Post year end acquisition We expect
Page 32 and 33: Deputy Chief Executive’s Review o
Page 34 and 35: D E P U T Y C H I E F E X E C U T I
Page 40 and 41: Finance Director’s Review of the
Page 42 and 43: F I N A N C E D I R E C T O R ’ S
Page 44 and 45: F I N A N C E D I R E C T O R ’ S
Page 46 and 47: Statement of Principal Risks and Un
Page 48 and 49: Environmental Report FOR THE YEAR E
Page 50 and 51: E N V I R O N M E N T A L R E P O R
Page 52 and 53: Health and Safety Report FOR THE YE
Page 54 and 55: H E A L T H A N D S A F E T Y R E P
Page 56 and 57: Directors Robert Walker Geoff Coope
Page 58 and 59: Corporate Responsibility Statement
Page 60 and 61: Corporate Governance Board committe
Page 62 and 63: Corporate Governance Audit committe
Page 64 and 65: Audit Committee Report • The effe
Page 66 and 67: Directors’ Remuneration Report FO
Page 68 and 69: Directors’ Remuneration Report ta
Page 72 and 73: Directors’ Remuneration Report Ex
Page 74 and 75: Directors’ Remuneration Report Tr
Page 76 and 77: Directors’ Remuneration Report Ex
Page 78 and 79: Directors’ Report FOR THE YEAR EN
Page 80 and 81: Directors’ Report listed on the L
Page 82 and 83: Statement of Directors’ Responsib
Page 84 and 85: Income Statements FOR THE YEAR ENDE
Page 86 and 87: Balance Sheets As at 31 December 20
Page 88 and 89: Consolidated Statement of Changes i
Page 90 and 91: Cash Flow Statements FOR THE YEAR E
Page 92 and 93: NOTES TO THE FINANCIAL STATEMENTS
Page 94 and 95: NOTES TO THE FINANCIAL STATEMENTS D
Page 96 and 97: NOTES TO THE FINANCIAL STATEMENTS 4
Page 120 and 121:
NOTES TO THE FINANCIAL STATEMENTS 2
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
Five Year Record Consolidated incom
Page 134 and 135:
Notice of Annual General Meeting No
Page 136 and 137:
Notes to the Notice of Annual Gener
Page 138 and 139:
Directions to the Annual General Me
Page 140 and 141:
Other Shareholder Information recei
Page 142 and 143:
140 Shareholder Notes
Page 144:
TRAVIS PERKINS PLC Travis Perkins p
show all

Annual Report and Accounts - Hemscott IR

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?