Executive remuneration received in respect of 2014
Base salary
Salaries effective from January 2014 were agreed taking into
account a range of factors, including the performance of the
Group, comparative market data and salary increases for other
employees. The average increase for employees of the Group
was 3.2%, compared to 3.1% for the executive directors. Mark
Selway’s and Martin Lamb’s salaries were not subject to review
in 2014; the salaries for Douglas Hurt and Roy Twite increased
by 3.1% to £430,000.
Pension
Executive directors are entitled to receive a taxable cash
allowance instead of pension benefits. With the Committee’s
approval the executive directors may, at their discretion,
redirect part or all of their allowance into any defined
contribution pension arrangement in the country in which they
are contracted. Mark Selway receives a cash allowance of
30% of salary and the other executive directors were eligible
for a cash allowance of 35% of salary.
Pension benefits for past service
Martin Lamb and Roy Twite were previously active members
of the defined benefit IMI Pension Fund (‘the Fund’). Martin
Lamb opted out with effect from 6 April 2006 and Roy Twite
with effect from 1 February 2007. As a result they retain past
pensionable service up to these dates. With the consent of the
Company, Martin Lamb became a pensioner in the Fund upon
his retirement on 27 September 2014.
The key elements of the benefits in the Fund are
summarised below:
• the normal retirement age under the Fund is 62 for Roy Twite.
Roy Twite may retire from employment with IMI any time after
age 60 without actuarial discount.
• on death after retirement, a dependant’s pension is provided
equal to two-thirds of the member’s pension for Martin Lamb
and 50% of the member’s pension for Roy Twite.
• should Martin Lamb die within the first five years of
retirement, a lump sum is also paid equal to the balance of
five years’ pension payments. For Roy Twite the dependant’s
pension is increased to 100% of the member’s pension for
the remainder of the five year period.
• pensions in payment, in excess of any guaranteed minimum
pension, are increased each year in line with price inflation up
to a maximum of 5% in respect of pension built up before
1 January 2006, and 2.5% in respect of pension built up
after 1 January 2006.
Until Martin Lamb retired on 27 September 2014 his past
pension benefits continued to be linked to final salary inflation
(averaged over the past three years) and equivalent benefits
to those provided for under the Fund rules immediately prior to
closure were preserved in relation to ill-health retirement, death
in service and early retirement at the Company’s instance.
Financial Year ended 31 December
2009
1
2010
1
2011
1
2012
1
2013
1
2014
2
Total remuneration
(single figure, £000)
2,547
4,439
12,289
7,954
6,688
1,567
Annual variable pay
(% of maximum)
91%
95%
85%
47%
62%
36%
Long-term variable pay
(% of maximum) -
Share Matching Plan
64%
97%
95%
100%
100%
-
Long-term variable pay
(% of maximum) -
Performance Share Plan
45%
100%
100%
100%
82.6%
-
Three-year increase in share price (Based on
the relevant date)
2%
140%
180%
112%
61%
68%
The following table summarises the total remuneration for the Chief Executive over the last six years, and
the outcomes of short and long-term incentive plans as a % of maximum.
1
Represents remuneration for Martin Lamb.
2
Represents remuneration for Mark Selway who was appointed Chief Executive on 1 January 2014. No payments under long-term incentive plans will be made until 2016.
71
Strategic Review
Performance Review
Corporate Governance
Financial Statements
Introduction
Annual Report and Accounts 2014
