Annual report 2010 - Imperial Tobacco Group

Directors’ Remuneration Report continuedStrategy Performance Governance FinancialsHewitt New Bridge Street also reviews the Group’sremuneration principles and practices against corporategovernance best practice and helps ensure adherence to theGroup’s Executive Directors’ Remuneration Policy.Executive remuneration data provided by Towers Watsonwas also used to assist in benchmarking to ensure theconsistent application of our executive Remuneration Policy.To ensure Remuneration Committee members are fully awareof new developments and evolving remuneration best practice,Hewitt New Bridge Street presented a review of developmentsin UK corporate governance, focusing primarily on executivepay governance.Aon Hewitt is also assisting the Group in respect of thetriennial valuation of its pension fund and acts as insurancebrokers to the Group.Solicitors Allen & Overy LLP are retained by the Company andprovide legal advice on our employee share plans. Allen & OveryLLP and Ashurst LLP also provide services to the RemunerationCommittee as and when required. Both Allen & Overy LLP andAshurst LLP provide other legal services to the Group.The Company has appointed Alithos Limited to undertaketotal shareholder return (TSR) calculations and provideadvice on all TSR related matters, including advice in respectof the bespoke comparator group. Alithos Limited providesno other services for the Group.PricewaterhouseCoopers LLP, our Auditors, perform agreedupon procedures on earnings per share (EPS) calculationsused in our employee share plans to assist the RemunerationCommittee in determining the level of awards vesting.Main Activities – How the Remuneration Committee metits ObjectivesThe Board is ultimately accountable for executiveremuneration but delegates responsibility to theRemuneration Committee. Our Remuneration Committeeaddressed the following main issues during the year:– consideration of our new Chief Executive’s remunerationpackage upon appointment;– consideration of our Remuneration Policy forExecutive Directors;– the annual review of the Chairman’s, Executive Directors’and Chief Executive’s Committee members’ remuneration;– reviewing the executive bonus targets;– reviewing, and subsequently increasing, the executivebonus levels;– overseeing Remuneration Policy for senior managementand employees and our employee share plans;– undertaking the annual review of the Committee’s Termsof Reference; and– the disclosures in this Report.How the Committee spent its time102040%Executive remuneration 40Performance metricsincluding bonusOversight of sharebased incentives301030Other including bestpractice updates2080