BOC Report and accounts 2005 - Alle jaarverslagen

Report on remuneration 83
Mr Médori’s pension benefits were funded under the UK senior executive pension scheme on earnings up to the
‘earnings cap’ imposed by the Finance Act 1989. Mr Médori also received a salary supplement on earnings above
the ‘earnings cap’ to reflect the loss of pension coverage. In addition, he had a vested deferred benefit under the US
Cash Balance Retirement Plan.
Dr Rajagopal’s pension benefits are funded under the UK senior executive pension scheme. On retirement at
age 60, he will be entitled to a pension of two-thirds of his final 12 months’ salary.
Mr Walsh’s pension was provided under the US Cash Balance Retirement Plan and the US Senior Executive
Retirement Plan. In accordance with local competitive practices existing in his country of operation prior to his
appointment as a director, Mr Walsh’s bonus was pensionable.
Further details of the pension plans for executive directors are given below.
Defined benefit plans
Transfer
value at
Transfer
1 October value of
Deferred Increase in 2004 Transfer Change in Increase in increase in
benefit at deferred (or at date of value at transfer value deferred deferred
30 September benefit in appointment 30 September less member’s benefit (net benefit (net
2005 year if later) 2005 contributions of inflation) of inflation)
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Annual pension
Dr K Rajagopal 181 16 2,002 2,664 644 11 157
– former directors
R Médori 17 3 147 211 61 2 26
Lump sum benefit 1
J A Bevan 1,593 164 1,326 2 1,593 164 120 120
J K Masters 3 472 98 343 472 98 86 86
– former directors
R Médori 177 8 165 177 8 3 3
J L Walsh 714 190 512 714 190 174 174
1. All amounts have been retranslated at the exchange rate prevailing at 30 September 2005.
2. The transfer value of Mr Bevan’s lump sum benefit at 1 October 2004 has been adjusted to reflect the correction of his notional
pensionable salary.
3. The increase in deferred benefit for Mr Masters represents the increase from the date of his appointment to the board on 1 March 2005.
All transfer values have been calculated in accordance with Actuarial Guidance Note GN11.
Money purchase plans The company made contributions in the year to money purchase plans in respect of
the following directors:
2005 2004
£’000 £’000
A E Isaac 283 270
J K Masters 7 –
J L Walsh 18 13
308 283
Excess retirement benefits
No person who has served as a director at any time during the financial year has received retirement benefits in
excess of those to which he or she was entitled on the date that the benefits first became payable.
Sums paid to third parties
Except for fees paid to Smith & Nephew plc for the services of Sir Christopher O’Donnell as noted on page 78,
no consideration was paid to or receivable by any third party in respect of any person who served as a director
during the financial year.
Auditable part of the report on remuneration
The following sections and tables constitute the auditable part of the report on remuneration, as defined in Part 3,
Schedule 7A of the Companies Act 1985:
a) sections relating to ‘Long-Term Incentive Plan’,‘Share Matching Plan’,‘Executive Share Option Scheme 2003’,
‘Pensions’,‘Excess retirement benefits’ and ‘Sums paid to third parties’;
b) tables headed ‘Directors emoluments and compensation’,‘Individual remuneration’,‘Directors’ share interests
at 30 September 2005’,‘Directors’ share interests – movements during the year’,‘Long-Term Incentive Plan –
movements during the year’,‘Defined benefit plans’ and ‘Money purchase plans’.
The report on remuneration has been approved by the board and signed on its behalf by:
Guy Dawson Remuneration committee chairman
28 November 2005