Savills plc - Investor relations

REPORT OF THE DIRECTORS CONTINUEDREMUNERATION REPORTSalary and Annual BonusSavills' business philosophy is founded on the premise that employees shouldbe motivated through highly incentive-based remuneration packages and, aspart of this policy, basic salaries and benefits are strictly controlled. Salariesare reviewed annually (although not necessarily increased). Each operatingsubsidiary has a discretionary bonus scheme directly related to the profit ofthat subsidiary after charging all costs, including central overheads andfinance charges; during the year in the UK the amounts available fordistribution within these bonus pools were calculated in bands between 30%of profit through to 65% for excellent performance based on the achievementof pre-determined thresholds. These bands are reviewed regularly. Awards toindividuals are assessed by reference to fee earning achievements,profitability of the individual's area of responsibility, contribution to businessdevelopment and managerial responsibilities.The Group Chief Executive's and the Finance Director's salary and bonus aredetermined by the Remuneration Committee, having regard to the Group'sperformance and the remuneration packages of the other Executive Directors.The remuneration packages for each of the Directors is shown below and onpage 34. The bonus entitlements shown are subject to the aboveperformance criteria.BenefitsExecutive Directors and senior staff are provided with a company car (or salaryallowance) and they and their immediate families are members of the SavillsGroup's medical or hospital insurance schemes.PensionThe Inland Revenue approved Pension and Life Assurance Plan of Savills (thePlan) provides life assurance benefits to all relevant staff including theChairman and the UK based Executive Directors. Three Executive Directorsparticipated in the Plan for pension benefits during the year. The Plan is acontributory defined benefit scheme which provides a pension based on finalbasic salary and length of service. In addition to the Company's contribution,members contributed 5% of salary during the year ended 31 December 2003.Only basic salary is pensionable. The normal retirement age is 60. The Planis closed to new entrants for pension benefits, but continues to operate forexisting members. The Company undertook a review of the provision ofpension benefits in 2003, as a result the Plan will continue in existence but witheffect from 1 April 2004, members contributions will increase to 7%.In addition to the Plan, the Company also operated a defined contributionindividual pension plan for two Executive Directors during the year.Analysis of Directors' remuneration (audited)Salary/fees Bonus Benefits Total excl. pensionYear to Year to Year to Year to Year to Year to Year to Year to31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December2003 2002 2003 2002 2003 2002 2003 2002Cash Deferred** Cash Deferred**Executive Directors £ £ £ £ £ £ £ £ £ £Aubrey Adams* 119,000 119,000 450,000 - 260,000 - 939 900 569,939 379,900Jeremy Helsby* 101,000 101,000 175,000 37,000 125,050 31,250 939 900 313,939 258,200Simon Hope 85,000 85,000 817,000 82,750 735,000 18,750 9,029 9,953 993,779 848,703Robert McKellar* 94,000 94,000 275,000 25,000 180,000 25,000 402 361 394,402 299,361Rupert Sebag-Montefiore* 100,929 101,098 - 37,000 250,000 31,250 939 900 138,868 383,248David Wong* (resigned 30 June 2003) 92,813 205,072 183,438 - 180,000 - 35,156 74,731 311,407 459,803* The Company has made contributions to defined contribution pension plans in respect of the above Directors, as detailed on page 34.** For details of the Deferred Share Bonus Plan please refer to page 35.Aubrey Adams and Jeremy Helsby waived their entitlement to £50,000 and £6,000 bonus payments respectively in favour of contributions to registered charities by their employing companies.33