Executive director fixed pay
Salaries effective January 2015 were agreed taking into
account a range of factors including the prevailing economic
conditions, the financial performance of the Group and salary
increases for other employees.
The average increase for employees was 2.9%, compared
to 2.2% for the executive directors. Mark Selway’s and Roy
Twite’s salaries increased by 2.7% and 3.5% to £770,000
and £445,000 respectively. Douglas Hurt was not considered
for an increase in light of his retirement from the Board at the
2015 AGM.
Other elements of fixed pay (benefits and pension) will
be unchanged.
Incentive pay
As set out in the Annual Statement from the Chairman of the
Committee, changes are proposed to the incentive plans
for 2015. Shareholders are being asked to approve the
IMI Incentive Plan which will facilitate awards under these
arrangements, as well as a revised Directors’ Remuneration
Policy. Additional information can be found in the Annual
Statement from the Chairman of the Committee on pages 57 to
58 and the Directors’ Remuneration Policy on pages 59 to 67.
Annual bonus
In accordance with the changes to the remuneration policy,
the annual bonus plan will be operated as follows in 2015:
• 2015 bonus opportunity is set at 200% of salary for the Chief
Executive, 150% for Roy Twite and 125% for Daniel Shook.
• Bonus will be paid subject to performance in Group PBT
(40%), organic revenue growth (20%), cash conversion
(20%) and strategic and personal objectives (20%). Health
and safety will serve as an underpin to ensure bonuses
are only paid out when minimum standards are achieved.
• The Committee has determined that the targets associated
with the performance measures are commercially sensitive
and therefore is not disclosing them on a prospective basis.
This position will be reviewed at the end of the financial year to
determine whether any information will be disclosed at that time.
IMI Incentive Plan (‘IIP’)
In accordance with the changes to the remuneration policy, the
IIP will be operated as follows in 2015:
• 2015 awards are set at 250% of salary for the Chief
Executive, 200% for Roy Twite and 150% for Daniel Shook.
Douglas Hurt will not participate in the IMI Incentive Plan.
• Awards will vest subject to performance in three core areas
aligned to our longer-term strategic priorities: return on
capital employed (25%), relative Total Shareholder Return
(25%) and Group Profit Before Tax growth (50%). This means
that EVA, EPS growth and organic revenue growth will no
longer be directly reflected in our basket of measures.
Fees for the Chairman and non-executive directors
The Chairman and non-executive directors’ remuneration is
unchanged for 2015. A review of the non-executive directors’
base fees, Committee Chairman and senior independent
director fees will be carried out in 2015.
Share ownership for the Chairman and non-executive directors
The Chairman and non-executive directors are expected to
hold some shares in IMI within a reasonable period after
their appointment.
79
Strategic Review
Performance Review
Corporate Governance
Financial Statements
Introduction
Annual Report and Accounts 2014
