The company uses a bespoke comparator group of the Standard & Poors Global 1200 Capital Goods Index.  However, outliers are excluded when calculating TSR, an equal number above and below the median.  The remuneration consultant then calculates what would be deemed upper quartile performance.  This was deemed to be 30% above the index for 2009 / 10 awards reduced to 25%.

The Company will use three annually set targets for the eps performance element of its LTIP.

Having three long term plans, the company has indicated that it will increase the level of matching under the matching plan to 400% of base salary.

Many companies have a discretion to make additional or increased awards in exceptional circumstances; usually recruitment etc.  Centaur plc has a new view on this discretion  - the lack of value under existing awards (presumably due to performance and / or share price value) constituting exceptional circumstances.

TSR is also described as the Net Return Index as calculated by a specific financial information provider as selected by the committee.

Umeco has deferred shares as part of the annual bonus but no long term incentive.  There are no outstanding options under the existing option scheme, nor intention to grant options.

Casting plc has a very simple remuneration structure and does not take advice from remuneration consultants.  There are no disclosed share scheme arrangements.  Readers are recommended to consider the TSR performance which, over 3 years, was well into the upper quartile versus the Small Cap.

A number of companies have been addressing the issue of motivating executives during difficult times, particularly when element of their remuneration package may have become worthless, such as share options being under water, bonuses are not being paid and base pay is being frozen.  While the temptation to cancel such awards and start again must be there, caution should be exercised by companies, institutions are unlike to look favourable on such an approach.  This has been a bumper year for remuneration committee reports being voted down.

Barratt Developments have personalised TSR schedule to find median and upper quartile performance positions.  Using companies 51 to 100 in the FTSE 100, it takes the average of the top two performing companies and the average of the bottom two performing companies and then, in effect draws a line between the two points  from which can be calculated the median and the upper quartile.  A simialr approach has been follwed by Bellway but they use the TSR construct to get the TSR median and then assume upper quartiel is equivilent to 7.5% based upon historic analysis.  BUT see the latest R&A where there have been substancial changes for 2009.

The new share scheme for Victrex is an excellent example of clarity - Shareholders letter Dec 2008

N Brown Grp "TSR as a performance condition is considered approriate for the following reasons .... TSR performance condition is more easily understood and measurable by eligible executives...."  But .... "For share option schemes a performance condition of growth in earning per share (" EPS") applies ..."

Britvic reduced vesting at the median from 40% to 25% but increased award levels

Barr (AG) Seek to change performance conditions on LTIP with retrospective effect.

Some companies are making adjustments to LTIP awards to reflect the substantial reduction in share prices.  For instance Renovo used a 2007 share price for the calculation to determine the number of shares awarded