Anglo American Annual Report 2012

PensionPurpose Maximum opportunity OperationTo offer marketcompetitivelevelsof benefitCompany contribution:30% of basic salaryExecutive directors participate in defined contributionpension arrangementsPrior to 6 April 2011, executive directors had the option ofall or part of their employer-funded defined contributionarrangements to be paid into an unregistered retirementbenefits scheme (an EFRBS). Since 6 April 2011, executivedirectors have the option for all or part of these contributionsto be treated as if paid to an unregistered unfunded retirementbenefit scheme (an UURBS)The Committee is prepared to consider requests fromexecutive directors for a pension allowance to be paid in placeof defined contribution arrangementsOther benefitsTo providemarketcompetitivebenefitsNot pre-determinedThe Company provides:• Car allowance• Medical insurance• Death and disability insurance• Limited personal taxation and financial advice• One club membership• Access to company car and driver, as required• Other ancillary benefits, including attendance at relevantpublic eventsExecutive directors are entitled to 28 days’ leave per annumand may only carry over 8 days from one leave year to the next(up to a maximum balance of 20 days). The Company buys outany accumulated leave in excess of 20 daysGovernanceAll-employeeshare plansTo offer allUK-basedemployeesthe opportunityto build ashareholding in atax-efficient wayMaximum SAYE saving:£3,000 pa, with which allemployees have the optionto buy Company shares at a20% discountMaximum SIP investment:£1,500 pa to purchase Companyshares, with the potential for a1:1 matching award from theCompany and, from time to time,a limited number of free sharesUK-based executive directors are eligible to participate inthe Company’s Save As You Earn (SAYE) scheme and ShareIncentive Plan (SIP)Recruitmentand promotionarrangementsTo secure theappointmentand promotionof high-calibreexecutivesNot pre-determinedFor external appointments the Committee may offeradditional cash and/or share-based elements when itconsiders these to be in the best interests of the Company(and therefore shareholders). Such payments would takeaccount of remuneration relinquished when leaving theformer employer and would reflect the nature, timehorizons and performance requirements attaching to thatremuneration. Shareholders will be informed of any suchpayments at the time of appointment. The Company hasretained its Discretionary Option Plan to use in suchcircumstances, if appropriateFor an internal appointment, any variable pay elementawarded in respect of the prior role may be allowed to payout according to its terms, adjusted as relevant to take intoaccount the appointment. In addition, any other ongoingremuneration obligations existing prior to appointment maycontinue, provided that they are put to shareholders forapproval at the earliest opportunityFor external and internal appointments, the Committee mayagree that the Company will meet certain relocation expensesas appropriateAnglo American plc Annual Report 2012 111