1 Nov 2011
Hargreaves Lansdown
In the Financial Services sector, annual bonus is unlimited and the LTIs have no performance criteria more...17 Oct 2011
Ricardo & Barratt Developments
Following best practice, Ricordo discloses the fees paid to TW of both remuneration advice £50,000 and pension £518,645. Baarratt disclosed fees of £27k (£61K in 2010) but did not disclose the fees also paid to AON in respect of brokerage services more...15 Sep 2011
Diageo
While some companies have no remuneration committee adviser, Diageo make up for this taking advice from Deloitte, Kepler, Aon, Tower Watson, PwC and Equilar. The main provider Deloittee also provides a range of other services on tax, corporate finance and consulting. The fees paid to any of the advisers are not disclosed more...5 Aug 2011
Oxford Instruments
While at one stage joint house ownership was quite common, it became very uncommon. The CEO has however a joint ownership scheme paying £773 per month commercial rent on the company owned part of the house more...28 Jul 2011
Media Sector Report
The Media Sector Report is now available. It shows quite clearly that conservative pay correlates to good TSR performance and poor TSR performance correlates to aggressive pay. more...28 Jul 2011
Top Pay = Poor TSR - Media Sector Report
The Media Sector Report is now available. It shows quite clearly that conservative pay correlates to good TSR performance and poor TSR performance correlates to aggressive pay. more...22 Jul 2011
SkyePharma one off award to new CEO
The new CEO app during the year was not given participation in the annual bonus scheme but given a one off award of shares (approx 22% of base) under Listing Rule 9.4.2 (2). more...19 Jul 2011
Micro Focus makes one off award to new EC
Micro Focus has made a one off recruitment award of 652,000 RSS at £3.20 to the new Executive Chairman (previous NEC) using Rule 9.4.2(2) of the UKLA Listing Rules more...23 May 2011
Kingfisher Disclosure of Deferred Bonus
Kingfisher continues the approach of making the calculation of annual bonus difficult. While part of the annual bonus is deferred, to calculate the total annual bonus you have to look at the share grant table, multiply the grant by the share price and then add this to the annual bonus amount. more...23 May 2011
Deferred Bonus for ENRC
The company introduced a deferred bonus scheme at the same time as annual bonus was increased. The CEO increased from 200% to 300% but 1/3 now has to be deferred. The claim is that the new scheme increases the weighting of the package to performance related pay more...20 May 2011
Small Cap Index Remuneration Report
o Base pay increase on the up - at the median up from 0% to 3%. o Of the 18 ‘super elite’ TSR companies, that is companies that have upper quartile TSR over both a three and one year period, 14 of them pay at about or below the predicted base pay level. This analysis provided weight to the arguments that simple conservative remuneration structures are more supportive of good corporate performance than those more highly geared exotic structures. Median Base pay CEO - £326k FD - £215k Median Total Cash CEO - £481k FD - £299k Contact davidbrooks@meis for a full copy of the Summary or a full copy of the Report more...14 Mar 2011
FTSE 250
The FTSE Report is now available as part of the Meis Subscription Service. Key findings:- 22 companies are in the super elite TSR group CEO Median pay £450,000 CEO Median bonus 100% FD Medain pay £289,000 Most common share scheme - RSS Most common performance measure Options real eps, RSS comparative TSR more...21 Feb 2011
Food Sector
Meis News Food Producers Sector Report Executive Pay & Performance - Key Findings 1. 3 companies recorded a negative TSR figure over both 1 and 3 years, these being Uniq; Premier Foods and Northern Foods. 2. 3 companies were in the elite group that recorded Upper Quartile TSR results for both 1 and 3 years, these being Anglo Eastern, Devro and REA. 3. Max bonus median for the FTSE 100 was 175% and 100% for the FTSE 250 and Small Cap. 4. CEO base pay is quite evenly spread, with 7.69% of CEO’s receiving under £300,000 and 15.38% receiving £800,000 and nearly half being paid between £300,000 and £500,000. 5. FD’s base pay is also quite evenly spread, with 8% receiving under £200,000; 17% receiving £250,000 - £300,000 and 8% receiving £500,000 or more. 6. The most common type of share plan for the sector is a share option plan. The upper quartile award level is 200%. The most common performance condition is comparative TSR. more...11 Jan 2011
Industrial Engineering Sector
Industrial Engineering Sector Report Key Findings • Only 1 company recorded a negative TSR figure over both 1 and 3 years, this was Tex Holdings. • 7 companies recorded positive TSR over both one and three years but only 2 companies recorded Upper Quartile TSR results for both 1 and 3 years. • Of the 7 companies had base pay below the Meis Pay Indicator Model, 2 of them achieved positive TSR figures over both 3 & 1 years, namely Goodwin and Rotork. The remaining 5 companies achieved positive TSR results over 1 year but negative over 3 years. • Max bonus median for the FTSE 100 was 125%, with FTSE Fledgling being the 2nd highest with 120%. The remaining indexes were 100% • CEO base pay is quite widely spread, although 70% of CEO’s are paid up to a maximum of £400,000. • FD’s base pay was fairly spread out too, with 33% receiving between £200,000 & £250,000. • 68% of the schemes in use in this sector are Restricted Share Schemes, followed by Option Schemes and Matching Schemes (both with 16%). more...4 Jan 2011
Travel and Leisure Sector Report
• 7 Companies recorded a negative TSR figure over both 1 and 3 years. • Only 2 Companies recorded Upper Quartile TSR results for both 1 and 3 years. • Domino’s came out last at -£225,657 in the Meis Pay Indicator Model, although they were one of the 2 companies to achieve Upper Quartile TSR performance over 1 and 3 years. • Upper Quartile TSR performance over the 3 year period was actually a negative figure, at -15.95%. • Max bonus median for the FTSE 100 was 150%. • CEO base pay is grouped closer, with 33% of CEO’s receiving between £500,000 and £600,000, than the FD’s who peak with 18% receiving between £200,000 and £250,000. • Restricted Share Schemes are the most common type of share plan for the sector. Interestingly, 42% of these schemes use Comparative TSR as the main performance condition. This would suggest that the majority of schemes would provide no vesting. • HNBS advise most companies in this sector (43%), followed by None/Not Disclosed (14%). more...19 Aug 2010
Domino Pizza
The increase in the base pay for the CEO, 20%, justified as 1. a transition to FTSE 250 and 2. record profit performance and dividend payments. Maximum bonus of 150% was also paid for the record performance. LTIP Max 600% indicative 300%. more...19 Aug 2010
ITV
It is open for debate if the practice of not fully disclosing deferred bonus payments if within best practice. A bonus of £600k was shown as £210k cash payment. It is necessary to do a calculation to get the full figure. more...26 Mar 2010
When is a bonus not a bonus - Intertek
A deferred share bonus plan provides for an annual award of upto 100% of base determined upon annual performance. There are no further performance criteria on release other than continued employment. This is in addition to the annual cash bonus (130% for the CEO). The deferred bonus share amounts are not disclosed as annual bonus. There is a matching plan where the deferred bonus shares can then be matched upto two times. Another way of looking at the arrangement is a RSS with award of upto 300% with 1/3rd not subject to performance and 2/3rd subject to TSR performance.
more...10 Feb 2010
Debenhams Salary Comparator
̏The Committee considers base salary and salary increase for executives based on the median levels of pay within a group of comparable companies in the FTSE 350 Retail sectoȑ Two questions - does this imply that salaries are at the median? Which companies have been excluded from the FTSE 350 retail sector and what is the impact of their exclusion on the comparative data?
more...4 Feb 2010
St Ives
In advance of a major review of executive remuneration St Ives have increased the annual bonus by 25%. St Ives is a small cap company and employs HNBS for remuneration advice but as it is concerned about conflict of interest has also appointed PWC to exclusively advise the Remuneration Committee.
more...2 Feb 2010
M&S New Boss
Marc Bollan will receive £975,000 base salary, 250% potential annual bonus plus 400% share award. In addition to compensate him for loss of incentives at his former employer he will receive £1.6m cash and £1m worth of share awards in 2010, and then an additional share award of £3.9m worth of shares for 2011and 2012. He starts 1st May 2010.
more...27 Nov 2009
Reduction in base pay - Renishaw
With no share share schemes and small reduction in base pay, this company demonstrates the link between performance and reward.
more...27 Nov 2009
Adviser Fees -
Company meets best practice on remuneration disclosure, giving details of the fees paid to advisers now include Robert Wiseman Dairies, and Northumbrian Water
more...3 Nov 2009
Barratt - Leading remuneration thinking
Leading the way on executive compensation this year 2009, reduced annual bonus 180% down to 100%, claw back on short and long term bonus simplified LTIP performance.
more...3 Nov 2009
Micro Focus medium term incentives
For 2010, the medium term inceintive consits of additional bonus of over £100.000 additional deferred pay increase and a 50% of base increase LTIP award follwoing an increase in 2009.
more...4 Sep 2009
Remuneration Committee Adviser Fees
Robert Walters PLC is leading the way again this year by disclosing not only the advisers but also the fees paid. This had been suggest as good practice by the institutions but was rejected by advisers in the recent suggested code of practice.
more...3 Sep 2009
Hiring pay consultants can reap rich rewards for FTSE chiefs
The Times reports today that hiring a pay consultant can increase base pay. This is based on the analysis of current FTSE100 CEO data in iei.
Article http://business.timesonline.co.uk/tol/business/industry_sectors/support_services/article6819398.ece
more...31 Aug 2009
Uncertainty over code for pay consultants
A draft code of conduct has been submitted by pay consultants. This has been welcomed by Sir David Walker but others like the Association of British insurers have voiced scepticism.
See article Financial Times 24th August 2009
www.financial times/companies/uk
more...20 Jul 2009
Discretionary Bonuses
Fuller Smith pays a supplemental discretioanry bonus for last financial year.
more...2 Jul 2009
Merger of Exec Comp Consultants causes concern
"WASHINGTON, June 29 (Reuters) - Corporate governance activists decried a merger of Watson Wyatt Worldwide Inc and Towers Perrin, saying conflicts of interests could arise if executive compensation consultants get hired by the same managers to advise them on human resources issues."
see article in Guardian
http://www.guardian.co.uk/business/feedarticle/8583584
more...12 Jun 2009
Anger on Executive Pay
Press coverage is growing on executive compensation and the role of remuneration comsultants. See the Times.
more...24 Apr 2009
Dominance of Advisers
In the FTSE Small cap three advisors now have 75% of the market with HNBS having over half the market.
But a substancial minority of companies have decided that they do not need advisers. At the moment we can not observe any difference in performance between those companies that do use advisers and those which do not.
more...