Directors’ Remuneration Report (continued)
Remuneration Policy table
This policy will apply to current Executive Directors from 1st January 2013 and to any new Executive Directors appointed during 2013.
Element Purpose and link Operation Maximum Performance Changes from
to strategy targets prior policy
Base Salary Reflects the value of the individual Reviewed annually, effective Annual increases generally N/A None. 3%
and their role 1st January linked to those of the wider increase
Reflects skills and experience Takes periodic account against workforce awarded from
over time companies with similar Where salaries are significantly 1st January
characteristics and sector below market levels, higher 2013
Provides an appropriate level
of basic fixed income avoiding comparators increases may be awarded
excessive risk arising from over to close the gap where this is
reliance on variable income deemed appropriate
Bonus Incentivises annual delivery of Paid in cash 100% of base salary Group Underlying None
financial and strategic goals Not pensionable Operating Profit proposed
Maximum bonus only payable for (80%)
Deferred Bonus Plan was
achieving demanding targets introduced upon flotation in Strategic targets
2006 although it has not as (20%)
yet been operated
Long Term Aligned to main strategic Annual grant of nil cost 100% of salary (although grants LTIP performance None
Incentive Plan, objectives of delivering options or performance in excess of 100% of salary measured over three proposed
SIP and SAYE, sustainable profit growth and shares which normally vest may be made in exceptional years
and CSOP shareholder return after three years subject circumstances) 70% Adjusted Basic
to continued service and Executives also eligible to EPS growth targets
performance targets participate in the Group SIP, 30% relative TSR
SAYE and CSOP on the same targets
terms as other employees
Pension Provides modest retirement Defined contribution LSL Group Company matches N/A N/A
benefits HMRC approved arrangement employee contribution up to
Opportunity for Executive 5% of base salary
Director to contribute to their
own retirement plan
Other Benefits Provides insured benefits to Benefits provided through N/A N/A N/A
support the individual and their third party providers
family during periods of ill health
or death
Access to company car/car
allowance to facilitate effective
travel
Share To provide alignment between Executive Directors are 100% of base salary holding for N/A N/A
Ownership Executive Directors and required to build and maintain Executive Directors
Guidelines Shareholders a shareholding equivalent to
one year’s base salary through
the retention of vested share
awards or through open
market purchases
DEtAiLED REMunERAtion PoLicy
Base Salary and Benefits
Executive Directors’ base salaries are reviewed annually by the Committee taking into account the responsibilities, skills and experience of each
individual, pay and employment conditions within LSL and salary levels within listed companies of a similar size. Base salary levels as at 1st January
2013 and 2012 for the Executive Directors are as follows:
Salary as at Salary as at
1st January 2013 1st January 2012
Director Role £ £
Steve Cooke Group Finance Director 226,600 220,000
Simon Embley Group Chief Executive Officer 257,500 250,000
David Newnes Executive Director, Estate Agency Division 175,000 140,000
42 ANNUAL REPORT AND ACCOUNTS 2012