Pinewood Shepperton plc Annual Report ... - Pinewood Studios

Pinewood Shepperton plc Annual Report & Accounts 2010 39Directors’ remuneration report continuedComponents of the Executive Directors’ Remuneration continuedLong-Term Incentive Plan (“LTIP”)During 2010, the Company granted awards of shares to the Executive Directors and certain members of staff inaccordance with the rules of the Pinewood Shepperton plc 2006 Long-Term Incentive plan. Such an element of totalremuneration based on the achievement of financial targets for the Company over a sustained period, as part of anoverall competitive package, is considered vital to the retention of key employees.Full details of awards granted to Executive Directors that are yet to vest, are contained within the table in this reportentitled ‘Long-Term Incentive Plan’ on page 44. The Plan seeks to align the Executive Directors’ interests with those ofshareholders, and ensure transparency in terms of associated performance hurdles. The nature of the awards alsoprovides for the requirement for Executive Directors to build up meaningful shareholdings in the Company.Share optionsThe Company established a Sharesave Scheme at the time of the Initial Public Offering. Sharesave Scheme options havebeen issued at a 20% discount to the then prevailing market value. Employees were invited to participate in the schemein 2004, 2006, 2007, 2009 and a further invitation was made during 2010.Details of the options made to Executive Directors’ are set out under the table on page 43 in the report entitled ‘Directors’share options’.DilutionThe Company operates all of its share arrangements (both discretionary and “all employee”) within the ABI Guidelines ondilution. The ABI Guidelines provide that the Company can issue a maximum of 10% of its issued share capital in a rollingten-year period to employees under all its share plans. In addition, of this 10% the Company can only issue 5% to satisfyawards under discretionary or executive plans.Pension arrangementsFor Executive Directors, only basic salary is pensionable. All Executive Directors are eligible to become members of thepersonal pension plan arranged by the Group, which is a defined contribution scheme. The Company’s contribution forthe Executive Directors is set at a maximum of 12.5% of basic salary. All other employer contributions for the executivemanagement team and employees reflect longevity of service with the Group but are capped at a maximum of 10% ofbasic salary.