Annual report 2010 - Imperial Tobacco Group

Benefit Trusts have also been provided with ordinary shares held by the Company in treasury in order to satisfy vestingawards and option exercises.Since demerger in 1996, the cumulative number of shares under option and award granted pursuant to all of the Company’semployee share plans totals 2.8 per cent of its issued share capital. Following initial grants on demerger, subsequent annualgrants have averaged 0.3 per cent of issued share capital.Summary of Options and Awards GrantedCumulative Options and Awards grantedas a percentage of issued share capitalOptions and Awards granted during the yearas a percentage of issued share capitalLimit on awards10% in 10 years 2.0 0.25% in 5 years 1.0 0.25% in 10 years (executive plans) 1.0 0.1Consultancy Agreement with Non-Executive Deputy ChairmanIn addition to his appointment as Non-Executive Deputy Chairman, Mr J-D Comolli entered into an agreement with ImperialTobacco Limited, the Group’s principal operating company.Under this agreement he provided consultancy services to the Group and received fees up to a maximum of €850,000 per annum.The agreement terminated on 31 January 2010 and was replaced with an eight month agreement paid at the rate of€20,000 per month. The replacement agreement terminated early upon Mr Comolli’s resignation on 14 September 2010.Remuneration Arrangements for Former Executive DirectorsMr D CresswellFollowing his retirement from the Board in December 2007, Mr D Cresswell remains a member of Supervisory Boards withinthe Reemtsma group and the Board of Imperial Vina Danang Company Limited.Mr M A HäusslerMr M A Häussler is currently in receipt of a retirement pension that has been reduced because it was taken before he reachedhis normal retirement age. His service agreement with the Group provided that he would receive similar overall pension benefitsto those that he would have received had he remained in the Reemtsma Cigarettenfabriken GmbH pension arrangement.This was a pension for life equivalent to 42 per cent of his fixed annual salary at age 63. For death in retirement, a spouse’spension for life of 60 per cent of that amount would be payable. The pension is made up of two parts: one part payable fromthe unfunded pension arrangement of Reemtsma Cigarettenfabriken GmbH, the other part payable from the separately fundedImperial Tobacco Pension Fund. The pension payable under the Reemtsma arrangement and from the Imperial TobaccoPension Fund may be increased annually in accordance with the Rules of those arrangements, or as required by law.Mr S HuismansFollowing his retirement from the Board in January 2006, Mr S Huismans remains a member of Supervisory Boards withinthe Reemtsma Group. He was also appointed as a non-executive director of Altadis, S.A. upon its acquisition by the Groupin January 2008 until November 2008. Mr Huismans received additional remuneration for fulfilling such non-executive roles.Mr S T PainterFollowing his retirement in May 2000, Mr S T Painter entered into a consultancy agreement with Imperial Tobacco Limited,the Group’s principal operating company.The agreement, as amended in October 2001 and May 2004, ran until March 2007. Under the terms of the agreement heprovided consultancy services as required and received fees at a day rate of £1,000 with a minimum fee based on 100 days’service for each 12 month period ending on 30 June 2006, and 67 days for the period 1 July 2006 to 6 March 2007.Mr Painter continued to provided consultancy services until July 2010 as required and received fees at a day rate of £1,000.He was entitled to reimbursement for the use of his car.Mr Painter was also a member of Supervisory Boards within the Reemtsma Group until December 2009 and, betweenJanuary and October 2008, the Altadis Group for which he received additional remuneration for fulfilling such non-executiveroles. He remains a Director of Altadis Maroc.Mr B SetrakianFollowing his appointment to the Board in June 2008, Mr B Setrakian retained a number of appointments within Altadis’USA business. He resigned from these appointments in December 2008. Mr Setrakian received additional remunerationfor fulfilling such non-executive roles.For the BoardP H JungelsChairman of the Remuneration Committee2 November 201095