Directors’ Remuneration Report
introduction
The Directors’ Remuneration Report has been prepared in accordance with the Companies Act 2006 and Schedule 8 of the Large and Medium Sized
Companies and Groups (Accounts and Reports) Regulations 2008. The part of the Report also meets the relevant requirements of the Listing Rules
of the FSA and describes how the Board has applied the principles relating to Directors’ remuneration in the Code. Furthermore, in response to the
UK Government’s proposed legislation regarding the reporting of Directors’ remuneration and changes to the voting rights, a number of the revised
reporting requirements have been incorporated into this year’s report. A single resolution to approve the Remuneration Report will be proposed at
the AGM at which the Financial Statements will also be approved.
This part of the Report has been divided into separate sections for audited and unaudited information.
Details of the Remuneration Committee’s composition and responsibilities are set out in the Corporate Governance Report at page 36 of this Report.
Governance
Directors’ Report and Business Review
unaudited information
The Remuneration Committee has considered in the financial period matters relating to the remuneration of the Chairman and the Executive Directors.
None of the Committee members has any personal financial interest (other than as Shareholders), conflicts of interests arising from cross-
directorships or day to day involvement in running the business. The Committee makes recommendations to the Board. The terms of reference of
the Committee are available from the Company Secretary or LSL’s website at: www.lslps.co.uk.
During 2012 the Remuneration Committee appointed NBS and Deloitte to provide independent advice on matters relating to senior executive
remuneration. Neither NBS nor Deloitte provided any other advice to LSL during the year.
EXEcutiVE DiREctoRS AnD SEnioR MAnAgEMEnt REMunERAtion PoLicy REPoRt
general policy
LSL’s strategy has been designed to create shareholder value and the aim of LSL’s remuneration policy is to attract, motivate and retain Executive
Directors with the experience and skills necessary to deliver that strategy and optimise shareholder value. The Committee reviews the Executive
Directors and senior management remuneration policy annually in light of market conditions, performance, and developments in corporate
governance best practice. The Committee also considers the level of risk (e.g. environmental, social and governance) associated with this
remuneration policy to ensure that there are sufficient safeguards in this regard and to ensure that the Remuneration Policy does not inadvertently
motivate irresponsible behaviour.
There are five main elements of the remuneration package for Executive Directors and senior management:
• Base salary;
• Benefits;
• Pension arrangements;
• Annual bonus; and
• Long term incentives.
LSL’s policy is that a substantial proportion of the remuneration of the Executive Directors and senior management should be performance related
and clear objectives and targets are set which are linked to the Group’s strategy.
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