AstraZeneca Annual Report and Form 20-F Information 2011

Simon LowthComponents of remuneration – What was paid to the Chief Financial Officer (%)1126322011FixedBase SalaryVariable*BonusPSPAZIP1024362010FixedBase SalaryVariable*BonusPSPAZIP1623352009FixedBase SalaryVariable*BonusPSPSOP313026* Bonus element is the actual bonus paid for the year in question. PSP, AZIP and SOP elements are on an expected value basis.Simon LowthBase pay per annum and % changes over previous year2012 2011 2010£660,000 £635,500 £620,000+3.85% +2.5% +13%> The Committee reviewed the CFO’s base pay in December 2011and decided to award an increase for 2012 of 3.85%. This waswithin the range of salary increases for employees across theGroup. The Committee consulted major shareholders and tooktheir views into account before awarding this increase.> The CFO was awarded a bonus for performance during 2011 of£769,902 (121% of base salary out of a maximum possible awardof 150% of base salary), the cash element of which will be paid in2012 1 . His bonus for performance during 2010, the cash element ofwhich was paid in 2011, was £918,245 (148% of base salary out of amaximum possible award of 150% of base salary) 2 . The 2011 bonuswas lower than the 2010 bonus by 16%. The reasons for this are setout in the section below headed Variable elements of the CEO’s andCFO’s remuneration in 2011.> The CFO must defer one third of any pre-tax bonus into OrdinaryShares or ADSs. These are held for three years before beingreleased. The bonus is not pensionable.> The CFO received an LTI award in 2011 with an expected value of160% of base salary 3 . Full details can be found on page 126. Underthe rules of the PSP and the AZIP, in respect of any financial yearof the Company, the maximum market value of shares that may intheory be put under a PSP or an AZIP share award in respect ofan employee is 500% of that employee’s base salary.> After consulting major shareholders and taking their views intoaccount, starting in 2012 the Committee has decided to increasethe target LTI award for the CFO from an expected value of 160%of base salary to 200%.> In respect of the LTI award made in 2011, the distribution betweenthe PSP and the AZIP was in the ratio 75% to 25%.> During 2011, as a result of the vesting of the 2008 share awardunder the PSP, the CFO received 73,060 Ordinary Shares anda cash payment in respect of dividends accrued.> The CFO is entitled to standard non-cash employmentbenefits, such as healthcare benefits, insurances andcar purchase arrangements.> In relation to pension arrangements, the CFO receives a paymentequivalent to 24% of his base salary, which amounted to £153,000in 2011 (2010: £149,000), as a cash alternative to participation in adefined contribution pension scheme. Full details can be found onpage 118.> The Committee increased the CFO’s shareholding requirementin January 2012 from 125% to 200% of base salary.> At 31 December 2011, the CFO had a beneficial shareholdingof 68,538 4 AstraZeneca shares which, at that date, had a valueapproximately equivalent to 321% of his 2011 base salary.1The factors considered by the Committee in assessing performance during 2011 anddetermining the bonus are summarised on page 116.2Each year in January, the Committee determines bonuses for performance in the previousyear and these are paid in February.3The Company estimates the expected value of LTI awards taking account of the likelihoodof performance conditions and targets being achieved.4This figure includes an estimated 14,312 shares post-tax held in retention in the DeferredBonus Plan.Corporate GovernanceAstraZeneca Annual Report and Form 20-F Information 2011Directors’ Remuneration Report 115