NATS-Annual-Report-2015

Annual Report and Accounts 2015 | NATS Holdings Limited
Governance 65
Reports from Board Committees
(continued)
Employee share plan
There are no share option schemes in place for
executive directors.
The NATS All-Employee Share Ownership Plan is designed
to give every member of staff (including executive directors
but not non-executive directors) an equal opportunity
to acquire a stake in the future success of the company.
The share plan holds 5% of the shares in NATS and is
administered by a special trustee company with three
directors – one each appointed by HM Government, AG
and the Trades Unions (collectively known as the Trustee).
Baroness Brenda Dean chairs the Trustee meetings.
At the date of this report, Richard Deakin held 1,100 shares
(prior to him leaving NATS), Martin Rolfe holds 300 shares
and Nigel Fotherby holds 2,777 shares.
The current HM Revenue and Customs approved valuation,
for the period 1 January 2015 to 30 June 2015, values the
shares at £4.30 each.
Employment contracts
The employment contracts of Martin Rolfe and Nigel
Fotherby provide for 12 months’ notice in the event of
termination by the company.
Leaving arrangements for former Chief Executive
Richard Deakin’s employment contract was terminated
by mutual agreement with effect from 30 June 2015. No
compensation was paid for loss of office. Payments for
contractual entitlements for the year 2014/15 are included
in the Directors’ remuneration table. In addition to his
contractual pay from 1 April to 30 June 2015 and six month’s
pay in lieu of notice, the company agreed to pay costs on
Mr Deakin’s behalf, which relate mainly to legal fees and
outplacement services.
Arrangements for Chief Executive
With effect from 18 May 2015, Martin Rolfe was appointed
as Chief Executive Officer. It is intended that Martin will
undertake this role until a permanent appointment is
made. His salary for the period of this appointment will be
increased to £300,000 and he will receive a completion
bonus at the end of the period of £50,000.
Non-executive directors’ remuneration
Charges for the services of non-executive directors are
determined in agreement with the relevant sponsoring
body - the Department for Transport in the case of the
Partnership directors, AG in the case of AG directors, and
LHRA in the case of the LHRA director.
The Partnership directors and the LHRA director each
received annual remuneration of £36,000 in the financial
year. AG directors received no remuneration for their
services to the NATS Board. However, a payment of
£180,000 per annum is made direct to AG in lieu of
remuneration for these directors. This sum is used to
fund the activities of AG.
Paul Golby has a contract specifying the remuneration
he receives from the company, being £160,000 on an
annualised basis.
Except for Roger Cato, the LHRA nominee director,
other non-executive directors do not have contracts
with the company. Roger Cato has a contract specifying
the remuneration he receives from the company, which
is terminable at LHRA’s discretion or through resignation.
The Partnership directors are normally engaged on threeyear
fixed-term contracts and have letters of appointment
from the Department for Transport.
Governance