In addition to these quantifiable financial and non-financial
measures, each executive director has a number of personal
objectives, some of which are linked to The IMI Way. Objectives
are agreed and communicated to the individual during the first
quarter of the financial year, and pertain to areas directly within
their remit. These personal objectives and the Committee’s
assessment of individuals’ performance against them is
described below, to the extent the Committee does not believe
the information to be commercially sensitive.
Measures and Committee’s assessment of performance
Level of award
(% of salary)
M W
Selway
The performance measures fell into six key areas, which included strategy, leadership development and IMI
Way. The key achievements identified by the Committee included assessing our markets and drivers for growth;
benchmarking performance and agreeing a plan for improvement.
30%
D M Hurt
The performance measures fell into eight key areas including strategy, financial controls, major projects, pensions
and tax. The key achievements identified by the Committee included successful management of the £620 million
return of cash to shareholders in conjunction with the share consolidation and supporting the Chief Executive.
17%
R M Twite
The performance measures fell into eight key areas, which included people development, major projects and
strategy. The key achievements identified by the Committee included delivering improved bookings and margins.
19%
M J Lamb
In light of Martin Lamb’s short time on the Board during 2014, the Committee determined that Martin’s personal
contribution to the business over the period would be an assessment by the Committee and the Chairman. The
Committee reviewed his last few months and agreed that their expectations had been met in full.
23%
In aggregate this resulted in the following short-term incentive outcomes:
Awards vesting under the Share Matching Plan
In May 2012, awards were made to the executive directors
under the Share Matching Plan (‘SMP’). At the date of awards,
all executives exceeded their individual share ownership
requirement and as such were invited to invest up to the
maximum permitted. The 2012 SMP award will vest at 70%.
Vesting was subject to the achievement of an Economic Value
Added (‘EVA’) performance condition (see page 89 for definition),
measured over the three years ending 31 December 2014. The
calculation of EVA is based on segmental operating profit after
tax with appropriate adjustments, less a capital charge on the
invested capital in the business reflecting IMI’s cost of capital.
The performance measure considered compound annual
growth in EVA over the three financial years from 2012 to 2014
compared to EVA in the preceding three financial years. Awards
lapse for negative compound growth. However for positive
growth between 0% and 6%, 10% to 25% of matching shares
vested; and for growth between 6% and 17%, 25% to 100%
of matching shares vested. Within each range, vesting is
calculated on a straight-line basis.
1
Bonus pro-rated to retirement from the Board on 8 May 2014.
2014 Maximum
bonus opportunity
(% of salary)
Total bonus
awarded (£000)
Total bonus
awarded
(% of salary)
Achievement of share
ownership guidelines
at 31 Dec 2014
Bonus delivered
in form of cash
(£000)
Bonus delivered
in form of shares
(£000)
M W Selway
1
200%
545
72.7%
11%
273
272
D M Hurt
125%
191
44.4%
929%
191
-
R M Twite
125%
197
45.8%
421%
197
-
M J Lamb
1
150%
140
51.7%
n/a
140
-
73
Strategic Review
Performance Review
Corporate Governance
Financial Statements
Introduction
Annual Report and Accounts 2014
