Remuneration Report
The Committee is governed by formal terms of reference agreed by
the Board and comprises two non-Executive Directors and the
Chairman. The written terms of reference were reviewed and
updated during 2005 and are available from the Company Secretary
and are also published on the Company’s website. The Committee
comprised IM Grice, Chairman (appointed 24 January 2007), JW
Matthews (who retired as Chairman on the appointment of IM
Grice) and JL Rennocks. Lord Stewartby retired from the Committee
on 10 January 2007, following his retirement from the Board. The
Committee determines the specific remuneration packages,
including share schemes, of the Executive Directors and also
periodically monitors the remuneration of other senior executives
who report to the Executive Directors. The Chief Executive attends
meetings at the invitation of the Committee to provide guidance as
appropriate on the impact of remuneration policy and advice on the
performance of Executive Directors. The Chief Executive does not
attend meetings when his own position is discussed. Any matter
affecting the Chairman is discussed by the Committee without the
Chairman present.
The Committee met on three occasions during the year. The
Committee received advice from Towers Perrin in 2005 on matters
relating to Executive remuneration.
The Committee has not carried out any further review of share schemes during the year. The Committee is satisfied that the current share incentive scheme, including grant levels and performance conditions, remain appropriate to the Company’s current circumstances and prospects.