Savills plc 2012 Annual Report - (PDF) - Investor relations

Remuneration reportcontinuedApplication of 2012 Executive Director remuneration policyIn accordance with the policy, set out on pages 48 and 49 below are details of Executive Director remuneration in 2012.The Committee notes that BIS proposes introducing a ‘single figure’ remuneration disclosure for Executive Directors, although theexact requirements of this disclosure are yet to be finalised. In anticipation of this disclosure, the following table shows total figure forbase salary, benefits, pension and annual performance profit share in 2012 for each of the Executive Directors. The final disclosurerequirements may be different, but it is hoped that the table below helps shareholders’ understanding and demonstrates theCommittee’s commitment to transparent reporting.Executive Directors’ ‘single figure’ for financial year ended 31 December 2012 and as a comparison for financial year ended31 December 2011 (audited)Base salary£Benefits 1 £Pension 2 £Performance Profit Share 3Cash£Deferredshares£Total‘single figure’remunerationincludingawards whichvested duringthe year£J Helsby2012 225,000 11,216 45,000 997,407 301,280 1,579,9032011 221,250 10,757 44,250 823,360 168,640 1,268,257S Shaw2012 175,000 11,216 31,500 758,464 217,448 1,193,6282011 175,000 10,990 31,500 559,337 114,563 891,390Notes:1 Benefits comprise private medical insurance and car allowance2 Employer pension contribution costs and any profit share waived in favour of pension contributions3 The element of performance profit share awarded in the form of cash and deferred shares and excluding any charity/pension waiver. For 2012, J Helsby waived £25,313and S Shaw waived £12,488 in favour of contributions to registered charities. For 2011, J Helsby waived £20,000 in favour of a contribution to a registered charity andS Shaw waived £40,000 in favour of a contribution to his pension schemeIn addition, the awards granted in May 2009 to J Helsby and S Shaw under the terms of the ESOS became exercisable during the year having satisfied the performanceconditions attaching to them in full. As at the date that the awards became exercisable, the value realisable by respectively J Helsby and S Shaw was £82k and £76k;however, neither award has been exercised to date and the values have not been included in the above table pending finalisation of the new regulations and clarification asto whether the amount to be included in the ‘single figure’ remuneration should be the value realisable at the point that an award becomes exercisable or the values actuallyrealised when an award is exercised. The Sharesave option granted to S Shaw in 2009 matured during the year and was exercised, realising a gain of £5,913The information in this table has been audited by the independent auditors, PricewaterhouseCoopers LLP.Performance related remuneration for 2012The following near term performance measures applied to the 2012 peformance related profit share arrangements. No discretion wasexercised with regards to awards made in relation to 2012 performance.Profit Share Performance Measures for 2012Profit Performance – 75% of AwardMeasured in relation to underlying PBT performancePersonal Performance – 25% of AwardThese measures incentivised the delivery of strategic and operationalobjectives (financial or non-financial), or specific milestones towardsthem, which create longer term shareholder value, specifically theyincentivised sustainable improvements in the underlying driversof performance, fundamental to the continued development andfurther growth of the Group as well as the achievement of businessdevelopment goals. Further detail on specific targets is commerciallysensitive, because the delivery of these objectives is targeted over themedium term. The Committee will continue to monitor best practicedisclosures and any changes to the disclosure requirements thatresult from the finalisation of the draft regulations.50 Savills plc Report and Accounts 2012