BAE-annual-report-2014
BAE-annual-report-2014
BAE-annual-report-2014
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Governance<br />
ANNUAL<br />
REMUNERATION<br />
REPORT<br />
CONTINUED<br />
Annual bonus<br />
Bonuses for the <strong>2014</strong> year are paid in March 2015. The breakdown of bonus measures, achievement and pay-out<br />
for each executive director is shown below. One-third of the bonus payment is subject to compulsory deferral into<br />
<strong>BAE</strong> Systems shares for a three-year period, for which there is no additional performance condition.<br />
CHIEF EXECUTIVE<br />
Measures<br />
Weight (as a<br />
percentage<br />
of target)<br />
Actual performance against targets set<br />
Below Threshold Target Stretch<br />
Target for<br />
<strong>2014</strong><br />
Percentage of<br />
Actual maximum<br />
performance 4 opportunity<br />
Financial Group EPS 40.0 38.5p 39.1p 58.6%<br />
Group cash 25.0 £(1,916)m £(743)m 100.0%<br />
Group order intake 15.0 £13.5bn £14.8bn 63.8%<br />
Personal Safety 5.0 See note 1 below 60.0%<br />
Key strategic objectives 15.0 See note 2 below 88.8%<br />
Total bonus (as a percentage of maximum) 74.3%<br />
GROUP FINANCE DIRECTOR<br />
Measures<br />
Weight (as a<br />
percentage<br />
of target)<br />
Actual performance against targets set<br />
Below Threshold Target Stretch<br />
Target for<br />
<strong>2014</strong><br />
Percentage of<br />
Actual maximum<br />
performance 4 opportunity<br />
Financial Group EPS 40.0 38.5p 39.1p 58.6%<br />
Group cash 25.0 £(1,916)m £(743)m 100.0%<br />
Group order intake 15.0 £13.5bn £14.8bn 63.8%<br />
Personal Safety 5.0 See note 1 below 60.0%<br />
Key strategic objectives 15.0 See note 2 below 90.0%<br />
Total bonus (as a percentage of maximum) 74.5%<br />
PRESIDENT AND CHIEF EXECUTIVE OFFICER OF <strong>BAE</strong> SYSTEMS, INC.<br />
Weight (as a Actual performance against targets set<br />
percentage<br />
Measures<br />
of target) Below Threshold Target Stretch<br />
Target for<br />
<strong>2014</strong><br />
Percentage of<br />
Actual maximum<br />
performance 4 opportunity<br />
Financial Group EPS 13.3 38.5p 39.1p 58.6%<br />
Group cash 8.3 £(1,916)m £(743)m 100.0%<br />
Group order intake 5.0 £13.5bn £14.8bn 63.8%<br />
<strong>BAE</strong> Systems, Inc. profit 26.7 $1,030m $959m 0.0%<br />
<strong>BAE</strong> Systems, Inc. cash 16.7 $(3,903)m $(3,430)m 100.0%<br />
<strong>BAE</strong> Systems, Inc. order intake 10.0 $10.5bn $10.5bn 50.0%<br />
Personal Safety 5.0 See note 3 below 37.5%<br />
Key strategic objectives 15.0 See note 2 below 90.0%<br />
Total bonus (as a percentage of maximum) 56.5%<br />
1. The Group achieved the 11% target for reduction in the Recordable Accident Rate (see page 20). The other elements of the objective relating<br />
to reduction in significant risk rating and driving improvements in behavioural safety were also met.<br />
2. Outcome determined by the Committee based on performance against a combination of base and premier objectives relating to the delivery<br />
of the Group’s strategic objectives and demonstration of leadership behaviours.<br />
3. The US business did not meet the 11% target for reduction in the Recordable Accident Rate. The other elements of the objective relating to<br />
reduction in significant risk rating and driving improvements in behavioural safety were met.<br />
4. Adjusted to be on a like-for-like basis with the targets.<br />
The above table has been subject to audit.<br />
72<br />
<strong>BAE</strong> Systems<br />
Annual Report <strong>2014</strong>
Change language