Report of the Directors
Governance

Remuneration Report

Remuneration Report to Shareholders for the
year ended 31st March 2012

1 / 2 / 3 / 4 / 5 » Next

Michael Roney
Chairman of the Management Development
and Remuneration Committee

Introduction to the Remuneration Report

The overriding responsibility of a remuneration committee is to create the remuneration policies and practices that achieve the best value for shareholders. Pay and incentives have to be set at the right level to attract and retain good management and to fully incentivise outstanding management performance, but at levels that are in line with the sector in general, and that provide a fair return to shareholders.

This year, we recognise that the remuneration of senior executives is under more scrutiny than ever before and we are mindful of the principles of remuneration published by stakeholder representatives such as the Association of British Insurers (ABI) and of the potential revisions to governance outlined by the Department of Business, Innovation and Skills. This report seeks to be open and transparent in reporting on remuneration and on the basis for remuneration, both historically and going forward.

The remuneration committee is also charged with ensuring that the long term interests of the company and shareholders are taken fully into account, both in remuneration structure and in ensuring that good processes exist for management development and succession planning. This is particularly important in a high technology company where R&D investment is required many years before those ideas come to commercial fruition. Therefore we aim to build remuneration policies and structures that reward performance over the long term and that encourage directors and employees to develop long term careers with the company.

I believe that the consistent results over the last decade, the consistency and success of a largely internally developed management team and the very strong year we have experienced in 2011/12 indicate that we have good policies and practices in place. However, we will continue to review all aspects of remuneration, management development and succession planning to ensure that shareholders’ interests continue to be fully represented.

Michael Roney

» Continue

1 / 2 / 3 / 4 / 5 » Next

Back to top