Anglo American Annual Report 2012

GOVERNANCE DIRECTORS’ REMUNERATION REPORT3.6 Distribution statementfor 2012Figure 14 sets out the total spendon employee reward over 2012compared to profit generated by theCompany and the dividends receivedby investors.Figure 14: Distribution statement for 2012Distribution statement 2012 2011Underlying Earnings$m 2,839 6,120(Total Group)% change (54)% 23%Dividends payable for year (Total) $m 1,087 898% change 21% 13%Payroll costs for all employees $m 5,387 4,946% change 9% 9%Employee numbers ’000 106 100% change 6% 0%4. OUTSTANDING SHAREINTERESTSThe information in this section hasbeen subject to external audit.4.1 Conditional share awardsgranted in 2012Figure 15 summarises the longer-term,share-based awards granted todirectors during 2012. Receipt ofthese awards is dependent on theCompany’s performance over2012–2014, as detailed below.4.2 Details of BSP EnhancementShares granted in 2012• Vesting of the BSP EnhancementShares granted in 2012 is subject toreal EPS growth, ie growth in theCompany’s earnings per sharecompared to growth in the UK RetailPrice Index, over three years to31 December 2014.• The performance targets and vestingoutcomes are illustrated in Figure 16.• The performance targets wereapproved by the Committee afterreviewing external expectations andperformance over a number of yearsand have been set at a level thatprovides stretching performancelevels for management.Figure 16: 2012 BSPEnhancement SharesVesting (% of Enhancement Shares)100%44%0%RPI+9% RPI+15%Anglo American’s 3-yearEPS growth (%)Figure 15: Summary of conditional share awards granted in 2012Type of awardBSPEnhancementShares (1)LTIP shareawardsPerformancemeasureEPS growthSection 4.2TSR vs.sector index(25%)Section 4.3.1TSR vs.FTSE 100index (25%)Section 4.3.2AOSC (50%)Section 4.3.3Vesting schedule44% for RPI+9%100% for RPI+15%30% for TSRequal to median100% for median+5% pa or above30% for TSRequal to median100% for 80thcentile or above0% for $4.6bn100% for $5.6bnPerformanceperiod end (2) Director Basis of award31/12/2014 Cynthia Carroll 75% of 2011Bonus SharesRené Médori 75% of 2011Bonus SharesNumber ofshares awardedFace valueat grant (3)26,573 £721,72316,538 £449,17231/12/2014 Cynthia Carroll 350% of salary 157,733 £4,258,791René Médori 300% of salary 85,048 £2,296,296(1)The BSP Enhancement Shares were awarded in March 2012. The number of shares granted was 75% of the number of deferred Bonus Shares awarded to each executive director in respect of 2011 annualperformance (Cynthia Carroll: 35,431 Bonus Shares; René Médori: 22,051 Bonus Shares). The value of each Bonus Share award was 50% of the total bonus earned for 2011.(2)The performance period for the LTIP TSR measures is three years ending on the day of the announcement of the 2014 financial results in 2015.(3)The face value of each award has been calculated using the share price at time of grant (£27.16 for the Enhancement Share awards and £27.00 for the LTIP awards). As receipt of these awards is conditional onperformance, the actual value of these awards may be £0. Vesting outcomes will be disclosed in the 2014 report.120 Anglo American plc Annual Report 2012