Anglo American Annual Report 2012

GOVERNANCE DIRECTORS’ REMUNERATION REPORT3.4 Long term incentiveplan outcomes for 2012In 2010 Cynthia Carroll and RenéMédori received LTIP grants withvesting subject to (a) the Company’sTSR performance relative to (i) aweighted group of internationalmining companies and (ii) FTSE 100companies over the three-yearperiod to announcement of the 2012results, and (b) the level of savingsdelivered by the Asset Optimisationand Supply Chain programmes to31 December 2012.Figure 11 sets out further details ofthe measures, the Company’sperformance against each and theassumed outcomes for each executivedirector. As the performance period forthe TSR measures ends immediatelyafter the date of this report on theannouncement of the 2012 results,performance and vesting in respectof the TSR measures is based on thelatest available information as at31 December 2012.Figure 12: LTIP vestingoutcomes for 2012(all amounts in 000)CYNTHIA CARROLL(2011: £3,056 – decrease of 74% in 2012)£802RENÉ MÉDORI(2011: £1,921 – decrease of 74% in 2012)£504Figure 11: LTIP assessment for 2012For more details on the measuresgo to section 4.3SECTOR INDEX COMPARISON(25% OF TOTAL AWARD)• The Sector Index measurecompares the Company’sthree-year TSR performancewith the weighted median of sixinternational mining companies(94%) and four industrial mineralcompanies (6%).• Vesting required the Company’sTSR performance to be at leastequal to the weighted median.• As at 31 December 2012 theCompany’s TSR performancewas below the weighted median(at -13%); it is therefore notexpected that any shares will vestfor this part of the award.FTSE 100 COMPARISON(25% OF TOTAL AWARD)• The FTSE 100 measure comparesthe Company’s three-year TSRperformance with the constituentsof the FTSE 100.• Vesting required the Company’sTSR to be at least equal to themedian TSR of the FTSE 100.• As at 31 December 2012 theCompany’s TSR performancewas ranked below the 50thpercentile of the FTSE 100; it istherefore expected that no sharesfor this part of the award will vest.AOSC (50% OF TOTAL AWARD)• The AOSC measure rewardsthe delivery of additional operatingprofit and capital expendituresavings delivered through theCompany’s Asset Optimisationand Supply Chain programmes.• Minimum vesting requiredcumulative savings to 31 December2012 of $5.13bn and maximumvesting required savings of$6.27bn.• Actual performance was above themaximum target, leading to fullvesting of this part of the award.3-year TSR performanceagainst weighted sector median% per annumVesting (% of total LTIP award)50%25%7.5%Zerovestingassumed0%Threshold: 0% pa Max: 5% paVesting schedule and performanceto 31 December 2012Arrow represents expected vesting3-year TSR rankingvs FTSE 100 indexVesting (% of total LTIP award)50%25%7.5%Zerovestingassumed0%Threshold: 50thArrow represents expected vestingMax: 80thVesting schedule and performanceto 31 December 2012Anglo American’s AOSC efficiency($bn)Vesting (% of total LTIP award)50%0%Min: $5.13bnMax: $6.27bnVesting schedule andactual performanceArrow represents expected vestingFull vestingof 50% ofawards118 Anglo American plc Annual Report 2012