Report & Accounts - JLT

Remuneration ReportRemuneration Report34Other benefitsOther benefits include life assurance cover equal to fourtimes basic salary, company cars which may be used forprivate purposes, or a cash alternative in lieu thereof,private medical and permanent health cover for theexecutive directors and their families and dividend incomeon shares held in an employee benefit trust.Pensions policyThe existing pension arrangements for the executivedirectors are described on pages 40 and 41.The Committee has reviewed the impact of theimpending changes to the pensions legislation relating totax-favoured retirement provision which is due to comeinto effect in April 2006. No change in policy has been norwill be made as a result of these changes which will havethe effect of increasing costs to the Company.Non-executive directorsThe remuneration of non-executive directors is a matterreserved for the Board.With effect from 1st January 2006, the fee payable toMr Howe was increased to £200,000pa to reflect hisincreased responsibilities and time involvement as JointDeputy Chairman leading up to his appointment asChairman in succession to Mr Carter at the forthcomingAnnual General Meeting. His fee will remain unchangedupon such appointment. Mr Howe is retiring as a Trusteeof the JLT Pension Scheme to take effect prior to 31stMarch 2006.With effect from 1st January 2006 Mr Howe’s contract issubject to a six month notice provision. All other feesremain unchanged at the date of this report.External non-executive directorshipsMr Collins was a non-executive director of Tribal Groupplc until 24th March 2005. He retained the fee of £6,667paid by that company in 2005.Mr Carter was a non-executive director of City NorthGroup plc until 5th May 2005. He retained the fee of£3,000 paid by that company in 2005.Jardine Lloyd Thompson Group plc Annual Report & Accounts 2005The non-executive directors receive directors’ fees.They do not participate in any bonus or share incentiveschemes, enjoy any pension benefits nor, save for acompany car provided to Mr C G R Leach, receive anyother benefits.The fees for the non-executive directors are reviewedperiodically to reflect market rates and respectiveresponsibilities. The basic fee in respect of 2005 was£35,000pa. Additional fees were paid as follows:Chairman of Audit and Compliance Committee£10,000pa; Chairman of Remuneration Committee£7,500pa; Deputy Chairman and Senior IndependentDirector each £5,000pa.Service contracts and notice periodsIt is the Company’s policy that executive directors shouldhave secure agreements with an indefinite term and thatall such contracts can be terminated by the Company orthe director by giving notice not exceeding one year.Non-executive directors are appointed for a three yearterm, which is renewable, with three months’ notice oneither side, no contractual termination payments beingdue and subject to retirement by rotation at the AnnualGeneral Meeting.