Punch Taverns plc 2011 Annual Report
Punch Taverns plc 2011 Annual Report
Punch Taverns plc 2011 Annual Report
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38<br />
<strong>Punch</strong> <strong>Taverns</strong> <strong>plc</strong><br />
<strong>Annual</strong> <strong>Report</strong> and Financial Statements <strong>2011</strong><br />
<strong>Report</strong> on Directors’ remuneration continued<br />
Non-executive Directors’ fees<br />
All Non-executive Directors have specific terms of engagement and their remuneration is determined by the Board based upon<br />
recommendations from the Chairman and Chief Executive Officer (or, in the case of the Chairman, is determined by the Committee<br />
based on recommendations from the Senior Independent Non-executive Director and the Chief Executive Officer) within the limits<br />
set by the Articles of Association and based on the median level of fees payable to peers in the same comparator group as that used<br />
for Executive Directors’ remuneration. Non-executive Directors cannot participate in any of the Group’s share incentive schemes or<br />
performance-based plans and are not eligible to join any of the Group’s pension schemes.<br />
It is the Board’s policy to take into account the following factors in determining the fees of the Non-executive Directors:<br />
• the median level of fees for similar positions in the market; and<br />
• the time commitment each Non-executive Director makes to the Group (through membership of the Audit and Risk, Remuneration<br />
and Nomination and Governance Committees).<br />
The following table sets out the current Non-executive fees:<br />
<strong>2011</strong>/12<br />
Company Chairman 1 £250,000<br />
Basic fee £42,000<br />
Senior Independent Non-executive Director £45,000<br />
Additional fees for chairing the Audit and Risk or Remuneration Committee £10,000<br />
Additional fees for chairing the Nomination and Governance Committee £5,000<br />
1<br />
Stephen Billingham’s fee was set based on an assessment of the expected time commitment for the role and a market assessment of fee levels.<br />
Total shareholder return performance graph<br />
The graph shows the Company’s performance, measured by total shareholder return (TSR), compared with the FTSE 350 Travel and<br />
Leisure Index and the FTSE Small Cap Index (excluding investment trusts). The Committee considers these to be relevant indices for<br />
TSR comparison as the Company was a constituent of the FTSE 350 Travel and Leisure Index for the majority of the five-year period<br />
presented and, following the Spirit demerger, is now positioned in the FTSE Small Cap.<br />
£120<br />
£100<br />
£80<br />
£60<br />
£40<br />
£20<br />
<strong>Punch</strong> <strong>Taverns</strong><br />
FTSE Small Cap Index (excluding investment trusts)<br />
FTSE 350 Travel & Leisure Index<br />
£0<br />
Source: Thompson Reuters<br />
Aug 2006<br />
Aug 2007<br />
Aug 2008<br />
Aug 2009<br />
Aug 2010<br />
Aug <strong>2011</strong><br />
The graph above shows the value, at 20 August <strong>2011</strong>, of £100 invested in <strong>Punch</strong> <strong>Taverns</strong> <strong>plc</strong> on 19 August 2006 compared with the<br />
value of £100 invested in the FTSE SmallCap and FTSE 350 Travel and Leisure Indices over the same period. The other points plotted<br />
are the values at the intervening year ends.