Total single figure table
Notes accompanying the total single figure table
- Other benefits consist of company car (or allowance), family level private medical insurance and salary supplement. Life assurance cover and sick pay are also provided.
- The 2014 figures relate to BIP awards made in 2012 with performance periods ending on 31 December 2014. The shares vested on 2 March 2015 at a share price of 760.5p.
- The 2014 figures relate to CIP awards made in 2011 with performance periods ending 30 April 2014. The shares vested in May 2014 at a share price of 713p.
- I.B. Duncan was appointed in November 2014.
The interests in ordinary shares of directors and their connected persons as at 31 December 2014, including any interests awarded under the CIP or BIP, are presented below.
As at 26 February 2015, the interests of the Directors were unchanged from those at 31 December 2014.
|Beneficial||Shares subject |
|Shares subject |
- Figures relate to unvested awards under the BIP and the CIP.
As described in Section A: Directors' Remuneration Policy, the Board operates a shareholding retention policy under which Executive Directors and other senior executives are expected, within five years of appointment, to build up a shareholding in the Company. In respect of Executive Directors, the expectation is to hold at least 100% of basic salary. For the purposes of this requirement, only beneficially-owned shares will be counted. As at 31 December 2014, the Committee is satisfied that Executive Directors have fulfilled this requirement.
Comparison of overall performance and pay
The chart below shows the value over the last seven financial years of £100 invested in Bodycote plc compared with that of £100 invested in the FTSE All Share Industrial index. The Committee has chosen this index as the most reasonable comparison in terms of performance. The points plotted represent the values at each financial year end.
The table below shows how total remuneration for the Group Chief Executive has developed over the last five years.
|Single figure of remuneration £000||906||3,252||3,840||3,089||1,803|
|Annual variable element award (as a % of maximum) opportunity||98%||95%||73%||46%||73%|
|Long-term incentive vesting (as a % of maximum)||0%||100%||100%||99%||44%|
The total value of salary, non-pension benefits and bonus increased by 25.1% for the Group Chief Executive in 2014 compared to the previous financial year (2013: £765,657; 2014: £957,998). The equivalent average percentage change for the senior management population as a whole was a 17.1% increase on 2013. The salary increase for the Group Chief Executive in 2014 compared to the previous financial year was 3.0% (2013: £470,200; 2014: £484,306). Non-pension benefits decreased by 0.9% for the Group Chief Executive in 2014 compared to 2013 (2013: £17,364; 2014: £17,214). Bonus payable increased by 36.1% for the Group Chief Executive in 2014 compared to 2013 (2013: £278,093; 2014: £456,478).
Relative importance of pay spend
The table below shows the total expenditure in relation to staff and employee costs, distributions to shareholders and the Group's corporation tax paid in 2013 and 2014.
|Staff and employee costs||234.9||242.3|
|Distributions to shareholders||45.2||24.0|
|Corporation tax paid||19.0*||22.5|
* The decrease in corporation taxes paid in 2014 compared 2013 to 2014 is a timing issue, as US quarterly estimates of tax due in 2013 were overestimated, resulting in a £5.6m overpayment. The 2013 overpayment has been offset against 2014 US tax payments.
CIP and BIP awards granted and vested during the year
Awards or grants were made under the CIP and BIP Schemes as follows:
- BIP: Awards consisting of shares were granted to both Executive Directors, equivalent in value to 175% of their base salaries on 4 April 2014, and will vest after three years. Details of the awards are set out below. Awards are subject to continued employment and the achievement of the performance conditions specified in the Annual report on remuneration.
- CIP: Awards consisting of shares were granted to both Executive Directors, equivalent in value to 13% of S.C. Harris' base salary and 23% of D.F. Landless' base salary on 30 May 2014, and will vest after three years. Details of the awards are set out below. The maximum take up is 40% of the base salary and awards are subject to continued employment and the achievement of the performance conditions specified in the Annual report on remuneration.
Directors' interests under the Bodycote Incentive Plan
at 1 January
at award date
at date of
|S.C. Harris||575,196||–||231,144||3,623||–||£2.98||£7.62||3 March 2014|
|D.F. Landless||374,619||–||154,750||2,426||–||£2.98||£7.62||3 March 2014|
- Mid-market closing price of a share on the day before grant was £8.16. The face value of the award to S.C. Harris was £822,836. The face value of the award to D.F. Landless was £525,513.
- Subject to satisfaction of the relevant performance conditions (details of which are set out in the Annual report on remuneration). The awards that vested during the year did so at 98.5% of the maximum.
Directors' interests under the Bodycote Co-investment Plan
at 1 January
at award date
at date of
|S.C. Harris||14,011||–||10,608||–||–||£3.75||£7.13||23 May 2014|
|D.F. Landless||16,747||–||2,783||–||–||£3.75||£7.13||23 May 2014|
- Mid-market closing price of a share on the day before grant was £7.37. The face value of the award to S.C. Harris was £60,031. The face value of the award to D.F. Landless was £69,639.
- Subject to satisfaction of the relevant performance conditions (details of which are set out in the Annual report on remuneration). The awards that vested during the year did so in full.
E. LindqvistChairman of the Remuneration Committee
26 February 2015