Directors' report on remuneration (PDF 174 KB) - Inchcape

Directors’ <strong>report</strong> on remuneration continued
PENSION ENTITLEMENTS
The Group closed the UK final salary pension plan to future accrual on 31 December 2012. Under the scheme the Group offered
defined benefit pensions for Executive Directors and other senior executives at the normal retirement age of 65. The maximum pension
benefit was two-thirds of a scheme specific ceiling of £137,400 in the 2012/13 tax year, subject to completion of between 20 and 40
years’ service. Members who joined after March 2005 contributed 7% of pensionable salary. The Group Chief Executive did not
participate in the plan and received a cash supplement of 40% of base salary in lieu of a final pension provision. The Group
Finance Director received a cash supplement above the cap in 2012. Details are given in the emoluments table on page 59.
DIRECTORS’ PENSION ENTITLEMENTS
Increase in
accrued
pension during
the year £’000
Increase in
accrued
pension during
the year (net of
inflation)
Accumulated
total of accrued
pension at
31.12.11
Accumulated
total of accrued
pension at
31.12.12
Transfer value
(less Director’s
contributions) of
the increase in
accrued benefit
net of inflation
Transfer value of
accrued benefits
at 31.12.12
Transfer value
of accrued
benefits at
01.01.12
Difference in
transfer value
less any
contributions
made in
the year
John McConnell 5.1 4.7 9.6 14.7 88.7 284.3 194.7 80.1
The transfer value has been calculated in accordance with the Retirement Benefits Transfer Values (GN 11), 6 April 2002.
The transfer values of the accrued benefits represent the value of assets that the pension scheme would need to transfer to another pension provider on transferring the
scheme’s liability in respect of the Directors’ pension benefits. The transfer values do not represent sums payable or due to the individual Directors and therefore cannot
be added meaningfully to annual remuneration.
John McConnell made a contribution to his pension of 7% of capped salary via salary sacrifice during the year.
DIRECTORS’ SHARE OPTIONS
Held at 31.12.12
Lapsed
during
year
Exercised
during the
year
Granted
during the
year Held at 01.01.12 Exercise price (c) Exercise period
André Lacroix 205,468 (a) – – – 205,468 (a) £6.034 Sept 2008 – Sept 2015
755,999 (a) – – – 755,999 (a) £2.00 May 2012 – May 2019
243,870 (a) – – – 243,870 (a) £3.10 Apr 2013 – Apr 2020
4,390 (b) – – – 4,390 (b) £2.05 Nov 2013 – Apr 2014
John McConnell 17,746 (a) – – – 17,746 (a) £2.140 Mar 2006 – Mar 2013
28,428 (a) – – – 28,428 (a) £4.416 May 2007 – May 2014
21,644 (a) – – – 21,644 (a) £5.776 Mar 2008 – Mar 2015
222,772 (a) – – – 222,772 (a) £2.00 May 2012 – May 2019
46,875 (a) – – – 46,875 (a) £3.20 Nov 2012 – Nov 2019
125,806 (a) – – – 125,806 (a) £3.10 Apr 2013 – Apr 2020
3,703 (b) – – – 3,703 (b) £2.43 Nov 2014 – Apr 2015
Notes on share options
(a) Under the Inchcape 1999 Share Option Plan.
Options under the Inchcape 1999 Share Option Plan are granted on a discretionary basis to certain full time senior executives based within and outside the
UK including Executive Directors of the Company.
Such options are normally exercisable between three and ten years of grant.
Details of performance targets are given on page 58.
(b) Under the Inchcape SAYE Share Option Scheme.
There were no option exercises by Executive Directors during 2012.
The Inchcape SAYE Share Option Scheme is open to employees in the UK with at least three months’ service.
Participants make monthly savings for a three year period. At the end of the savings period options become exercisable within a six month period.
(c) Exercise prices are determined in accordance with the rules of the relevant share option scheme.
All options were granted for nil consideration
The table shows Executive Directors’ options over ordinary shares of 10.0p at 1 January 2012 and 31 December 2012.
The mid market price for shares at the close of business on 31 December 2012 was 430.9p. The price range during 2012 was 292.6p to 446.4p.
60 Inchcape plc Annual Report and Accounts 2012