NATS-Annual-Report-2015

Annual Report and Accounts 2015 | NATS Holdings Limited
Governance 63
Reports from Board Committees
(continued)
Policy on pay
It is the company’s policy to establish and maintain
competitive pay rates that take full account of the different
pay markets relevant to its operations. In return, employees
are expected to perform to the required standards and
to provide the quality and efficiency of service expected
by its customers. In fulfilling this policy, the company fully
embraces the principles of and complies with the provisions
of the UK Corporate Code on directors’ remuneration as
outlined below.
The level of executive directors’ remuneration takes
into account competitive practice across comparator
companies (which are based on organisations from which
NATS might seek to recruit employees or which are similar
to NATS in other respects) together with the need to attract
and retain employees. Executive directors are rewarded on
the basis of responsibility, competence and contribution,
and salary increases take account of pay awards made
elsewhere in the company. Performance-related elements
form a substantial part of the total remuneration package
and are designed to align the interests of directors with
those of shareholders and other stakeholders and to
promote the long term success of the company.
Performance is measured against a portfolio of key
business objectives and payment is made only for
performance beyond that expected of directors as part of
their normal responsibilities. In implementing this strategy
the Committee adopts the principle that incentive scheme
targets must be stretching and in line with the Board’s
agreed business plans and support the Board’s strategic
growth plans for NATS.
Executive remuneration packages
The remuneration package for executive directors is
reviewed each year and consists of: annual salary; pension
and life assurance; annual and long term performance
related incentive schemes; All-Employee Share Ownership
Plan; company car or car allowance; and medical insurance.
Full details of directors’ remuneration for 2014/15 are set
out on page 66.
Salaries
The Remuneration Committee determines, where
appropriate, annual increases to executive directors’
salaries having regard to their experience, responsibility,
individual contribution, market comparatives and pay
increases elsewhere in the group.
Pensions and life assurance
Executive directors’ pensions and life assurance are based
on salary only, with performance related pay and other
discretionary benefits excluded. There are two principal
methods of securing pensions for executive directors.
The first is through the Civil Aviation Authority Pension
Scheme (CAAPS), a defined benefit scheme. Nigel Fotherby
is a member of CAAPS. The second method is through the
NATS Defined Contribution Pension Scheme which came
into operation on 1 April 2009. Martin Rolfe participates
in this scheme, as did Richard Deakin until he left NATS.
Governance