and an assessment of individual performance. Bonus of £50,000, Entire bonus taken
In this way the bonus scheme aligns the €75,000, $100,000 in cash in year one
interests of Executive Directors and employees and below
with shareholders.
Bonus above £50,000 £50,000, €75,000,
As can be seen from the following table and below £100,000 $100,000 taken
the bonus pool and individual bonuses vary Bonus above €75,000 in year one
significantly with performance from year-to-year. and below €150,000 Balance of bonus
In 2012 the performance of the business was Bonus above $100,000 split 50% in year two,
very good in what remains a very challenging and below $200,000 and 50% in year three
business environment. This resulted in a
pre-tax return on equity of 18% and an average Bonus above £100,000 50% of bonus taken
bonus of 183%. This contrasts with 2011, Bonus above €150,000 in year one
when no bonuses were earned by the Bonus above $200,000 Balance of bonus
Executive Directors. split 50% in year two,
and 50% in year three
Executive Directors’ cash incentives and ROE
Pre-tax return Average bonus as a
on equity percentage of salary Share ownership is encouraged amongst senior
% %
personnel by allowing the deferred element of
2001 (24) 0 the annual bonus to be used, without deferral for:
payment of the exercise price on the
2002 13 90
exercise of share options;
2003 30 202 payment of tax on the exercise of
performance shares;
2004 28 173
purchase of shares; and
2005 19 54 payment of debt due on share purchases.
2006 35 274
The only exception to this is for US-based
2007 36 372 employees where, due to the implications of the
US Internal Revenue Code, employees are not
2008 14 53
able to receive the deferred element of their
2009 34 287 bonuses early in order to purchase shares.
2010 19 108
Early payment of deferred bonuses for reasons
2011 1 0 other than the above can only be made with
the agreement of the Chief Executive, and
2012 18 183
the Remuneration and Nomination Committee
in the case of Executive Directors.
The payment of larger bonuses is normally
deferred over a three-year period as follows
(with receipt dependent on continued service).
Meetings and attendance table
Remuneration
Audit and nomination
Ltd Board Committee Committee
Director Attended Attended Attended
RRS Hiscox 4/4 N/A N/A
BE Masojada 4/4 N/A N/A
SJ Bridges 4/4 N/A N/A
RS Childs 4/4 N/A N/A
RD Gillingwater 4/4 3/3 4/4
DM Healy 4/4 3/3 4/4
ER Jansen 4/4 3/3 4/4
Dr J King 4/4 3/3 4/4
R McMillan 4/4 3/3 4/4
AS Rosen 4/4 3/3 4/4
G Stokholm 4/4 3/3 4/4
Directors’ remuneration report Hiscox Ltd Report and Accounts 2012 41