2016_Halma_ARA_160610_2

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Remuneration Committee Report continued Annual Remuneration Report continued ESP Under the ESP, performance share awards and deferred bonus awards will be made in July 2016. The number of shares over which awards will be made is determined by the share price leading up to the award. The value of each performance share award, relative to salary has been fixed as follows: Executive Director Salary for 2016/17 Performance share award Value of award Andrew Williams £612,000 200% £1,224,000 Kevin Thompson £383,000 175% £670,250 Adam Meyers $480,000 150% $720,000 The performance share awards to be granted in July 2016 will be subject to an earnings per share performance target for 50% of the award and a ROTIC target for 50% of the award measured over the three financial years 2017, 2018 and 2019. The performance targets are set out below: Performance targets for 2016 and 2017 PSP awards ROTIC* (post tax) % of award vesting**
PERCENTAGE CHANGE IN CEO REMUNERATION The table below shows the percentage change in the CEO’s remuneration from the prior year compared to the average percentage change in remuneration for other employees. To provide a meaningful comparison, the analysis includes only salaried management employees and is based on a consistent set of employees. 2016 2015 CEO £000 CEO £000 CEO % change Other employees % change Salary 600 515 16.5% 6.8% Taxable benefits 31 27 14.8% –% Annual bonus 480 271 77.6% 20.3% RELATIVE IMPORTANCE OF SPEND ON PAY The table below shows the percentage change in total employee pay expenditure and shareholder distributions (i.e. dividends and share buybacks) from the financial year ended 28 March 2015 to the financial year ended 2 April 2016. 2016 £m 2015 £m % change Distribution to shareholders 48.5 45.3 7. 1% Employee remuneration (gross) 225.6 199.8 12.9% Employee remuneration (pro-rated) 225.6 210.1 7.4% The Directors are proposing a final dividend for the year ended 2 April 2016 of 7.83p per share (2015: 7.31p). STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS Pro-rated employee remuneration represents a restatement of the prior year employee remuneration for the current year number of employees. PAY FOR PERFORMANCE The seven-year graph below shows the Company’s TSR performance over the seven years to 2 April 2016 as compared to the FTSE 250 and the FTSE 350 Electronic & Electrical Equipment indices. Over the period indicated, the Company’s TSR was 694% compared to 321% for the FTSE 250 and 521% for the FTSE 350 Electronic & Electrical Equipment Index. The FTSE 250 has been selected as a broad market comparator, and the FTSE 350 Electronic & Electrical Equipment index has been selected because the Company believes that the constituent companies of this index are the most appropriate for this comparison as they are affected by similar commercial and economic factors to Halma. The table below the chart details the CEO’s single figure remuneration and actual variable pay outcomes over the same period. 800% TOTAL SHAREHOLDER RETURN (SEVEN YEARS) 700% 600% 500% 400% 300% 200% 100% 0% Mar-2009 Mar-2010 Mar-2011 Mar-2012 Mar-2013 Mar-2014 Mar-2015 Mar-2016 ■ Halma ■ FTSE 250 ■ FTSE 350 Electronic & Electrical Equipment 2010 2011 2012 2013 2014 2015 2016 CEO single figure remuneration (£000) £1,472 £1,999 £1,715 £1,958 £1,543 £2,006 £2,194 Annual bonus outcome (% of maximum) 19% 100% 40% 48% 37% 53% 53% PSP vesting outcome (% of maximum) 96% 100% 100% 98% 74% 78% 95% Halma plc Annual Report and Accounts 2016 87
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Halma plc Annual Report and Account
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Highlights Another record year of r
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Infrastructure Safety Products whic
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Revenue from outside the USA, UK an
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Our decentralised organisational st
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INCREASING HEALTH AND SAFETY REGULA
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INCREASING DEMAND FOR LIFE-CRITICAL
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Acquisition focus Insight Our marke
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Insight Trapped key interlocking is
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Insight Regulations around the worl
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Insight People are living longer th
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Insight Many processes rely on prec
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Resources and relationships Committ
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GROW INNOVATE ACQUIRE EMPOWER STRAT
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INNOVATE GROW ACQUIRE EMPOWER STRAT
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process and one which is subject to
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Mitigation Increased risk No change
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Mitigation Increased risk No change
Page 37 and 38: a considerable impact on the oil an
Page 39 and 40: towards the use of more sensors, no
Page 41 and 42: A third of American adults suffer f
Page 43 and 44: Today 1.8 billion people drink faec
Page 45 and 46: Adjusted profit bridge £m 160 155
Page 47 and 48: fell from 21% to 20% this year, and
Page 49 and 50: The Group accounts for post-retirem
Page 51 and 52: ENVIRONMENTAL MANAGEMENT SYSTEM (EM
Page 53 and 54: In return, we offer: • The opport
Page 55 and 56: Our intention is to create effectiv
Page 57 and 58: PEOPLE AND CULTURE I reported in la
Page 59 and 60: CAROLE CRAN NON-EXECUTIVE DIRECTOR
Page 61 and 62: Corporate Governance Report Leaders
Page 63 and 64: Board governance structure Board Pr
Page 65 and 66: October 2015 • Group strategic pe
Page 67 and 68: The Board and Committee evaluations
Page 69 and 70: Jane Aikman is in her final term, h
Page 71 and 72: Audit Committee COMMITTEE CHAIRMAN
Page 73 and 74: POLICY ON AUDITOR INDEPENDENCE AND
Page 75 and 76: Remuneration Committee COMMITTEE CH
Page 77 and 78: REMUNERATION POLICY The remuneratio
Page 79 and 80: Opportunity Maximum opportunity: 15
Page 81 and 82: EXECUTIVE DIRECTOR SERVICE CONTRACT
Page 83 and 84: NON-EXECUTIVE DIRECTORS Unless othe
Page 85 and 86: SINGLE FIGURE OF TOTAL REMUNERATION
Page 87: The three-year period over which th
Page 91 and 92: Date of grant As at 28 March 2015 G
Page 93 and 94: Other Statutory Information ACTIVIT
Page 95 and 96: The Companies Act 2006 also require
Page 97 and 98: Directors’ Responsibilities The D
Page 99 and 100: Risk Impairment of the carrying val
Page 101 and 102: AN OVERVIEW OF THE SCOPE OF OUR AUD
Page 103 and 104: Respective responsibilities of dire
Page 105 and 106: Consolidated Statement of Comprehen
Page 107 and 108: Consolidated Statement of Changes i
Page 109 and 110: Consolidated Cash Flow Statement Co
Page 111 and 112: Accounting Policies continued KEY A
Page 113 and 114: Critical accounting judgements Good
Page 115 and 116: Segmental reporting An operating se
Page 117 and 118: Accounting Policies continued Cash
Page 119 and 120: Cash and cash equivalents Cash and
Page 121 and 122: Notes to the Accounts continued 1 S
Page 123 and 124: Notes to the Accounts continued 1 S
Page 125 and 126: Notes to the Accounts continued 3 N
Page 127 and 128: Notes to the Accounts continued 6 P
Page 129 and 130: Notes to the Accounts continued 9 T
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Notes to the Accounts continued 19
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26 FINANCIAL INSTRUMENTS continued
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26 FINANCIAL INSTRUMENTS continued
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Company Statement of Changes in Equ
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Notes to the Company Accounts conti
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C12 RESERVES The Capital redemption
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C14 EXPLANATION OF TRANSITION TO FR
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2009/10 £000 2010/11 £000 2011/12
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Principal locations Telephone E-mai
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Principal locations Telephone E-mai
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DIVIDEND REINVESTMENT PLAN The Comp
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