Anglo American Annual Report 2012

GOVERNANCE DIRECTORS’ REMUNERATION REPORT3. DIRECTOR REMUNERATIONIN 2012The information set out in this sectionhas been subject to external audit.3.1 Basic salary for 2012In 2012 basic salary increases forthe executive directors were limitedto an inflation adjustment in line withthe increase for the broader UKemployee population.Figure 7: Basic salaries for 2012(all amounts in ’000)CYNTHIA CARROLL(2011: £1,170 – increase of 4% in 2012)£1,217RENÉ MÉDORI(2011: £736 – increase of 4% in 2012)£7653.2 Annual BSP outcomesfor 2012Figures 8a and 8b outline the keyannual financial and strategicperformance measures for the 2012Bonus Share Plan for Cynthia Carrolland René Médori, the level ofperformance achieved and resultingaward levels. Key aspects of theirperformance are also set out belowFigures 8a and 8b.Figure 9: BSP outcomes for 2012(cash bonus and Bonus Shares)(all amounts in ’000)CYNTHIA CARROLL(2011: £1,925 – decrease of 61% in 2012)£745RENÉ MÉDORI(2011: £1,198 – decrease of 61% in 2012)£469Figure 8a: BSP performance assessment for 2012 – Chief ExecutiveChief Executive BSP measures Below Threshold Target AboveCynthia CarrollCorporate Financial (50%)Earnings per SharePersonal/Strategic (50%)Asset OptimisationOperating PerformanceProject ExecutionCorporate Strategy and Portfolio ManagementOrganisation and De Beers IntegrationCorporate CitizenshipGroup safety performance (deductor)Overall performanceResulting BSP award35% of maximum bonus (50% payable in cash, 50% as Bonus Shares)BSP KEY PERFORMANCEASPECTS• The weaker prices for theCompany’s main commoditiesimpacted the executive directors’ability to deliver the target earnings;EPS performance was below therequired threshold level.• Cynthia Carroll oversaw stronggroup action to meet weak marketconditions.• Two major projects – Kolomelaand Los Bronces – are due to reachfull production on or ahead ofschedule; Minas-Rio experienceda timetable delay and an increasein budget.• Strong progress was achievedin the Asset Optimisation andSupply Chain programmeswhich encourage businessimprovements.• Cynthia Carroll led key strategicacquisitions (De Beers andRevuboè).• Implemented changes in seniormanagement in the businessesin South Africa to continueimprovements in performanceand safety.• Continued progress achieved inthe drive for safety improvement.116 Anglo American plc Annual Report 2012