46 LV= Annual Report 2012
Element of pay Objective Award level Performance criteria Performance period
Base salary To attract and retain Our policy is to pay salaries at the No performance criteria per N/A
high performing mid-market level for satisfactory se, but the performance of
individuals to lead individual performance, in line with the individual is taken into
the society the relevant market for the job. account when salary levels
are reviewed
Benefits To operate a competitive l Car allowance N/A N/A
benefits and pension
structure that provides l Medical insurance
adequate protection
to our employees l Income protection cover
and aids recruitment (executive level only)
and retention
l Group product discounts, which are
available to all staff and directors
on equal terms.
Pension* To provide the facility We operate two pension schemes: N/A N/A
for competitive and a defined benefit pension scheme
viable retirement income (DB) and a defined contribution pension
scheme (DC); executive directors are
eligible to participate in one, depending
on their date of joining LV=.
Employer contributions paid are:
DB scheme – 17.8% of salary
DC scheme – up to 14% of salary
Alternatively an executive director
may choose to receive a cash sum
of up to 22% of salary in lieu of
pension contributions.
Annual bonus To drive and reward Chief executive max: 110% Evaluation against annual 1 year performance period
delivery of near-term group and divisional
business objectives Board executive directors and other financial objectives, Awards may be partly
directors max: 80% risk metrics and a deferred (see below) for
balanced scorecard of up to three further years,
Around half the maximum is paid personal objectives during which time they
for target performance remain linked to ongoing
performance
Long-term To drive and reward Chief executive award value: Growth in Enterprise Value 3 year performance period
incentive plan longer term business 100% of base salary and relative investment
(LTIP) objectives, including the performance of the Society Two thirds of any resulting
value of the society to Board executive directors award value: payment will be deferred
its members 75% of base salary for up to two further
years, during which time
Other participants below Board it remains linked to
Executive Director: maximum 60% ongoing performance
Executive director’s salaries
w.e.f 1 April w.e.f 1 April
2012 2013
Mike Rogers £508,000 £520,700 * With effect from 1 July 2013 we will be closing our final
Philip Moore £348,500 £355,000 salary scheme to the build up of future benefits. All existing
Richard Rowney £307,500 £315,000 final salary scheme members will have the option to move
John O’Roarke £282,500 £290,000 into our defined contribution pension scheme.