The difference between those benefits and those automatically
provided under the Fund, the enhanced protection member
(EPM) benefits, is assessed as at 31 December each year to
determine if it was necessary to make a payment to the Fund
(to augment Fund benefits) or to make a payment in lieu of that
to Martin Lamb. EPM benefits were payable as at 31 December
2013 and Martin Lamb received an additional Fund pension of
£2,694 per annum in respect of these benefits. No EPM benefits
were payable as at 31 December 2012 or 31 December 2011.
EPM benefits were also payable at the date Martin Lamb retired
on 27 September 2014 and he received an additional Fund
pension of £3,558 per annum in respect of these benefits.
The Company and the Trustee of the Fund agreed to defer Martin
Lamb’s pension in the Fund so that payment commences on
7 January 2015 (the date he attains age 55) rather than on 27
September 2014.
Benefits
During the year the executive directors received a number of
benefits. These are summarised below. Amounts less than
£10,000 pa are combined.
1
Benefits pro-rated to retirement from the Board on 8 May 2014.
In addition to the above benefits and allowances that are included
in the single figure (refer to table on page 69), the executive
directors are also beneficiaries of company policies that have
no taxable value, including directors’ insurance, death in service
cover, travel insurance, the use of a company driver and personal
accident cover.
Accrued pension in
the Fund as at 31
December 2014
£000pa
Accrued pension in
the Fund as at 31
December 2013
£000pa
M J Lamb
334
331
R M Twite
67
65
M W Selway
D M Hurt
R M Twite
M J Lamb
1
2014 2013 2014 2013 2014 2013 2014 2013
Non-cash benefits (£000)
Total
1
-
1
1
2
2
1
3
Cash benefits and taxable allowances (£000)
Company
car and fuel
allowance
19
2 17 17 17 17
7 20
Relocation
-
100
-
-
-
-
-
-
Other
25
7
3
2
-
-
3
4
Total
45 109 21 20 19 19 11 27
Directors’ Remuneration Report (cont’d)
Annual incentive bonus
The 2014 bonus plan focused on the financial performance
of IMI during the year considering Group profit before tax and
exceptional items (‘Group PBT’) (35%); Group adjusted earnings
per share (‘EPS’) (15%); organic revenue growth (15%); cash
conversion (15%); health, safety and environment (5%); and
personal non-financial objectives (15%).
Progress was made on a number of fronts and we continued
to deliver positive results for our shareholders. In particular:
• the total dividend for the year increased by 6.5% compared
to 2013;
• Group adjusted basic earnings per share increased by 7%
compared to 2013;
• organic revenue growth was 2% in 2014, an improvement
on the 1% delivered in 2013; and
• very strong performance again for Health and Safety.
It is the opinion of the Committee that detailed disclosure,
either on a forward looking or retrospective basis of financial
and operational bonus targets is commercially sensitive. This
position will be kept under review. However, to give shareholders
a sense of delivered performance in the context of the ranges
set at the start of the financial year, the following graph illustrates
actual outcomes relative to the ranges set:
Weighting
1
Below
Threshold
Threshold
Target
Maximum
Above
Maximum
Bonus Earned
(% of bonus
opportunity)
Profit before tax
35%
4.7%
Earnings per share
15%
5.7%
Organic revenue growth
15%
0.0%
Cash conversion
15%
6.2%
Health & Safety
5%
5.0%
1
Total is out of 100%. Note that personal objectives account for 15%.
72
IMI plc
