G4S Annual Report and Accounts 2011

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Overview Strategic review Performance Directors’ remuneration report continued Directors’ pension entitlements Nick Buckles and Trevor Dighton accrued pensions in the non-contributory categories of the group’s defined benefit pension scheme until 5 July 2011 and 6 May 2011, respectively. The defined benefit pension scheme ceased provision of future service accrual from 5 July 2011 for all members apart from those protected under the public sector outsourcing arrangements. During their period of participation in the defined benefit pension scheme, Mr Dighton accrued pension at a rate of 1/30ths and Mr Buckles accrued pension at a rate of 1/52ths of their final pensionable salaries. Their rates of accrual have not changed in the time since they joined the Scheme. An actuarial reduction is applied to any pension payable before the normal retirement age of 60. For death before retirement a capital sum equal to four times pensionable salary is payable, together with a spouse’s pension of 50% of the member’s accrued pension plus a return of any contributions paid prior to the admission to the non-contributory category. For death in retirement, a spouse’s pension of 50% of the member’s pre-commutation pension is payable. Post retirement pension increases are payable at the rate of 5% per annum in respect of pension earned up to 31 December 1994 and in line with the increase in the Retail Prices Index subject to a maximum of 5% per annum in respect of pension earned after that date. A salary supplement in lieu of pension of 40% of basic salary is paid on cessation of accrual under the defined benefit scheme. The dates from which the salary supplement has been paid is set out below. Date Nick Buckles 5 July 2011 Trevor Dighton 6 May 2011 Grahame Gibson 6 April 2006 Pension entitlements and corresponding transfer values during the 12 months ended 31 December 2011 (all figures are in £’000s) are shown below: Executive directors Gross increase in accrued pension (1) Increase in accrued pension net of inflation (CPI) (2) Total accrued pension at 31/12/11 (3) Value of net increase in accrual over period (4) Total change in transfer value during period (5) Transfer value of accrued pension at 31/12/11 (6) Transfer value of accrued pension at 31/12/10 (7) Nick Buckles 42 24 403 500 1,599 8,705 7,106 Trevor Dighton 13 8 128 203 508 3,250 2,742 Grahame Gibson (210) Note (i) 20 Note (i) (3,726) 315 4,041 Notes (i) During the year, Mr Gibson transferred the majority of his benefits to a private pension arrangement. The transfer payment was £3.7m leaving a residual preserved benefit of £20k pa payable from age 60. (ii) Mr Dighton is over the normal retirement age of 60 and hence, consistent with last year’s disclosure, the transfer value is calculated on the assumption that he retired at the end of the year. (iii) Pension accruals shown are the amounts which would be paid annually on retirement. (iv) Transfer values have been calculated in accordance with the current transfer value basis adopted by the trustees of the G4S Pension Scheme in May 2011. (v) The value of net increase (4) represents the incremental value to the director of his service during part of the year up to the relevant termination dates. It is based on the increase in accrued pension (2) with the exception of Mr Gibson whose accrual ended on 5 April 2006. Lord Condon Chairman of the Remuneration Committee 12 March 2012 70 G4S plc Annual Report and Accounts 2011
Governance Financial statements Shareholder information Statement of directors’ responsibilities in respect of the annual report and the financial statements The directors are responsible for preparing the Annual Report and the group and parent company financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare group and parent company financial statements for each financial year. Under that law they are required to prepare the group financial statements in accordance with IFRSs as adopted by the EU and applicable law and have elected to prepare the parent company financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and parent company and of their profit or loss for that period. In preparing each of the group and parent company financial statements, the directors are required to: uu select suitable accounting policies and then apply them consistently; uu make judgements and estimates that are reasonable and prudent; uu for the group financial statements, state whether they have been prepared in accordance with IFRSs as adopted by the EU; uu uu for the parent company financial statements, state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the parent company financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and the parent company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the parent company and enable them to ensure that its financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities. Under applicable law and regulations, the directors are also responsible for preparing a Directors’ Report, Directors’ Remuneration Report and Corporate Governance Statement that comply with that law and those regulations. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Directors’ Responsibility Statement Each of the directors, the names of whom are set out on pages 49 to 51 of this annual report confirm that, to the best of his or her knowledge: the financial statements in this annual report have been prepared in accordance with the applicable accounting standards and give a true and fair view of the assets, liabilities, financial position and profit of the company and the group taken as a whole; and the directors’ report, including the Business Review on pages 8 to 43, includes a fair review of the development and performance of the business and the position of the company and the group taken as a whole, together with a description of the principal risks and uncertainties they face. The statement of directors’ responsibilities was approved by a duly authorised committee of the board of directors on 12 March 2012 and signed on its behalf by Trevor Dighton, Chief financial officer. Trevor Dighton Chief financial officer 12 March 2012 G4S plc Annual Report and Accounts 2011 71
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G4S Annual Report and Accounts 2011

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