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  • Glossary

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    Glossary

    SYM

     $

    Refers to US dollars unless specified otherwise

     <1 year

    Less than 1 year

     >1 year

    Greater than 1 year

     2P

    Proven and probable

    A

     AFS

    Available-for-sale

     Associate

    An entity in which the Group has an equity interest and over which it has the ability to exercise significant influence

    B

     BCF

    Billion cubic feet

     bbl

    Barrels of oil

    C

     CER

    Certified emissions reduction (carbon emissions certificate)

     CERT

    Carbon emissions reduction target

     CGU

    Cash generating unit

     CPI

    Consumer Price Index

    E

     EBITDA

    Earnings before interest, tax, depreciation and amortisation

     EUA

    European Union allowance (carbon emissions certificate)

    F

     FSA

    Financial Services Authority

     FTSE 100

    Financial Times Stock Exchange 100 share index, an average of share prices in the 100 largest, most actively traded companies on the London Stock Exchange

     FVLCS

    Fair value less costs to sell

    G

     g CO2/kWh

    Grammes of carbon dioxide per kilowatt hour

     GFRMC

    Group Financial Risk Management Committee

     GWh

    Gigawatt hour

    I

     IAS 19

    The International Accounting Standard related to Employee Benefits. These financial reporting rules include requirements related to pension accounting

     IAS 39

    The International Accounting Standard related to financial instruments (recognition & measurement)

     IFRS

    International Financial Reporting Standard

    J

     Jointly controlled entity

    A joint venture which involves the establishment of an entity to engage in economic activity, which the Group controls jointly with its fellow venturers

    L

     Level 1

    Fair value is determined using observable inputs that reflect unadjusted quoted market prices for identical assets and liabilities, for example exchange-traded commodity contracts valued using close-of-day settlement prices. The adjusted market price used for financial assets held by the Group is the current bid price

     Level 2

    Fair value is determined using significant inputs that may be either directly observable inputs or unobservable inputs that are corroborated by market data, for example over-the-counter energy contracts within the active period valued using broker-quotes or third-party pricing services and foreign exchange or interest rate derivatives valued using market-based data

     Level 3

    Fair value is determined using significant unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management's best estimate of fair value, for example energy contracts within the inactive period valued using in-house valuation techniques

     LNG

    Liquefied natural gas

    M

     mmboe

    Million barrels of oil equivalent

     mmth

    Million therms

     MWh

    Megawatt hour

    N

     NBV

    Net book value

     NGO

    Non-governmental organisation

    P

     PP&E

    Property, plant and equipment

     PRT

    Petroleum revenue tax

    R

     ROC

    Renewable obligation certificate

     RPI

    Retail Price Index

    S

     Securities

    Comprised of Treasury gilts designated at fair value through profit or loss on initial recognition and available-for-sale financial assets. The fair values of securities are based on quoted market prices, when available. If quoted market prices are not available, fair values are estimated using observable market data

     SCT

    Supplementary charge associated with UK Corporation Tax

     Spark spread

    The difference between the price of a unit of electricity and the cost of the gas used to generate it

    V

     VAT

    Value added tax

     VIU

    Value in use

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Statutory Disclosures

Audit requirements

The Remuneration Report up to this statement has not been audited. From this point until the end of the Report below, the disclosures, with the exception of the TSR graphs, have been audited by the Company's auditors, PricewaterhouseCoopers LLP.

 

Directors' emoluments

  Date of appointment Base pay/fees
£000
Cash AIS £000 (i) Cash payments in lieu of pension
£000
Benefits and other cash £000 (ii) Total emoluments 2011
£000 (iii)
Total emoluments 2010
£000 (iii) (iv)
  1. Each Executive Director has deferred up to 50% of their maximum AIS opportunity on a gross basis and invested in to the DMSS. Any balance paid in cash is included above.
  2. Benefits and other cash include:
    • benefits and expenses for Chris Weston made in respect of his relocation to Canada; and
    • employee discounts received by Directors during the year, in aggregate not more than £684 for any one individual (2010: £1,100).
  3. The following are excluded from the table above:
    • £101,250 was paid directly by the Company in 2011 into a personal pension plan for Sam Laidlaw and is referred to under Pensions and other benefits
    • Pensions;
    • Share options. No Executive Director exercised executive or Sharesave share options during 2011. Phil Bentley exercised executive options during 2010. The theoretical aggregate gain made was £2,692,697. Sam Laidlaw and Phil Bentley exercised Sharesave options during 2010. The theoretical aggregate gains made were £808 and £553 and the price of a Centrica share at the dates of exercise were 281.50 pence and 274.50 pence, respectively. LTIS and Special Long Term Incentive Scheme (SLTIS). The aggregate value of shares vested to Executive Directors under LTIS and SLTIS was £2,284,993 (2010: £2,435,828); and
    • DMSS. The aggregate value of shares vested to Executive Directors under the DMSS was £4,106,911 (2010: £2,852,299).
  4. The 2010 total emoluments figure:
    • in respect of each Executive Director, includes the total cash payment made under the AIS, before voluntary deferral in to the DMSS on a net basis; and
    • in respect of Ian Meakins is for the period from 1 October 2010 to 31 December 2010.
Chief Executive    
Sam Laidlaw 1 July 2006 950 279 63 1,292 2,045
Executive Directors    
Phil Bentley 13 September 2000 635 46 681 1,299
Mark Hanafin 14 July 2008 575 160 230 34 999 1,427
Nick Luff 1 March 2007 610 66 244 20 940 1,433
Chris Weston 1 July 2009 510 125 435 1,070 1,380
    3,280 351 753 598 4,982 7,584
Chairman    
Sir Roger Carr 1 January 2001 490 490 470
Non-Executive Directors  
Dame Helen Alexander 1 January 2003 85 85 79
Margherita Della Valle 1 January 2011 65 65
Mary Francis 22 June 2004 105 105 99
Andrew Mackenzie 1 September 2005 65 65 63
Ian Meakins 1 October 2010 65 65 16
Paul Rayner 23 September 2004 88 88 83
    963 963 810
Total emoluments   4,243 351 753 598 5,945 8,394
 

Annual Incentive Scheme (AIS)

The annual performance metrics in place for 2011 were designed to reward the delivery of our key strategic priorities for that year. Health, Safety & Environment (HS&E) performance was assessed against a corporate responsibility scorecard that includes HS&E performance indicators and incident rates. If overall business performance is not deemed satisfactory, the individual's bonus for the year may be reduced or forfeited, at the discretion of the Committee.

For 2011, the Committee set AIS targets to drive delivery of the annual operating plan. Delivery of the operating plan in each of the major business units and the Group as a whole would have resulted in AIS awards equivalent to half of the maximum opportunity. Achievement substantially in excess of the level required to meet the targets set would have been required to warrant the maximum award level.

Targets were set against a number of key measures including Group and business unit EP, operational metrics, HS&E performance and individual objectives.

The chart below illustrates the extent to which the targets set were achieved and accordingly the aggregate AIS award for each Executive Director.

Graph showing percent of base pay

Deferred and Matching Share Scheme (DMSS)

Compulsory deferral

Part of the bonus earned under the AIS for the previous year is compulsorily deferred in to Centrica shares (deferred shares). During 2011, 40% of AIS earned in respect of 2010 for the Chief Executive and 30% for the other executives was compulsorily deferred, details of which can be found under DMSS for Executive Directors below.

Voluntary deferral

Executives may make an additional voluntary deferral of AIS into Centrica shares (investment shares). The maximum total deferral that may be made, including the compulsory deferral, is 50% of the maximum AIS opportunity which may be earned for a year.

Share matching

Deferred and investment shares that are held for three years will be matched to the extent that a long-term performance condition is met, details of which can be found under the Total remuneration package.

For awards made from 2010, matching shares were structured as nil-cost options for all UK resident participants.

2012 aggregate deferral amounts

Executive Directors participated in the AIS during 2011 and will defer in aggregate as follows in 2012:

Director Aggregate value of deferrals at award date £000
Sam Laidlaw 848
Phil Bentley 339
Mark Hanafin 431
Nick Luff 458
Chris Weston 383

Structure of deferrals and performance measures

Graph showing the structure of deferrals and performance measures (Compulsory deferral, Voluntary deferral, Performance measured, Shares matched

EP is adjusted operating profit (after share of joint venture interest), less a tax charge based on the tax rate relevant to the different business segments and after deduction of a capital charge. The capital charge is calculated as capital employed multiplied by the Group's weighted average cost of capital. Where appropriate, expenditure on assets (and related costs) that are not yet in use (pre-productive capital) is excluded from capital employed.

 

Directors' interests in shares (number of shares)

The following table and the tables below show the interests of the Directors who held office at the end of the year in the ordinary shares of the Company and, for the Executive Directors, their interests in the Company's share schemes.

 
  Shareholdings as at 31 December
2011
Shareholdings as at 1 January
2011
DMSS total matching shares as at 31 December
2011
DMSS total matching shares as at 1 January
2011
LTIS total allocations of shares as at 31 December
2011
LTIS total allocations of shares as at 1 January
2011
  1. Executive Directors' shareholdings shown above include those held in the SIP and the deferred and investment shares held in the DMSS. Shareholdings for Chris Weston include 117,256 notional deferred shares under the DMSS which will remain notional until the end of the three-year deferral period due to local Canadian tax laws.
  2. Matching shares held in the DMSS and shares held under the LTIS are conditional and the above numbers indicate the maximum potential opportunity. More detail can be found in their respective tables below.
Chief Executive            
Sam Laidlaw (i) (ii) 2,249,985 1,859,419 1,770,346 1,707,182 2,032,379 2,129,974
Executive Directors            
Phil Bentley (i) (ii) 1,995,871 2,184,946 769,198 588,285 1,361,477 1,408,432
Mark Hanafin (i) (ii) 488,941 319,259 859,269 599,594 1,209,126 1,229,137
Nick Luff (i) (ii) 639,791 624,534 914,752 865,804 1,280,733 1,322,949
Chris Weston (i) (ii) 591,361 552,344 762,580 652,367 1,086,610 1,043,752
Chairman            
Sir Roger Carr 58,361 26,441
Non-Executive Directors            
Dame Helen Alexander 3,465 3,465
Margherita Della Valle 5,000
Mary Francis 3,500 3,500
Andrew Mackenzie 28,875 28,875
Ian Meakins 5,000
Paul Rayner 56,875 56,875
 

From 1 January 2011 to 23 February 2012, none of the Directors had any interests in the securities of the Company's subsidiaries or associated undertakings.

Changes since 1 January 2012

During the period from 1 January to 23 February 2012, the only changes to the Directors' interests in shares were in respect of shares acquired through the SIP: 125 shares in respect of Sam Laidlaw, 126 shares in respect of Mark Hanafin, Nick Luff and Chris Weston and 127 shares in respect of Phil Bentley.

 

DMSS for Executive Directors

DMSS allocations (number of shares)

  Deferred and investment shares held as at 1 January 2011 (i) (ii) Deferred and investment shares acquired during the year Deferred shares released and investment shares transferred during the year Deferred and investment shares held as at 31 December 2011 (iii) Conditional matching shares held as at 1 January 2011 (iv) Conditional matching and dividend shares awarded during the year (iv) (v) Conditional matching shares vested during the year (vi) Conditional matching shares held as at 31 December 2011
Sam Laidlaw      
2008 182,209 (182,209) 451,674 66,247 (517,921)
2009 282,574 282,574 701,639 701,639
2010 246,859 246,859 553,869 553,869
2011 218,265 218,265 514,838 514,838
  711,642 218,265 (182,209) 747,698 1,707,182 581,085 (517,921) 1,770,346
Phil Bentley      
2008 51,312 (51,312) 105,859 15,526 (121,385)
2009 86,099 86,099 172,198 172,198
2010 126,745 126,745 310,228 310,228
2011 111,117 111,117 286,772 286,772
  264,156 111,117 (51,312) 323,961 588,285 302,298 (121,385) 769,198
Mark Hanafin      
2009 113,519 113,519 332,245 332,245
2010 107,644 107,644 267,349 267,349
2011 102,358 102,358 259,675 259,675
  221,163 102,358 323,521 599,594 259,675 859,269
Nick Luff      
2008 91,926 (91,926) 226,536 33,226 (259,762)
2009 140,352 140,352 356,787 356,787
2010 114,084 114,084 282,481 282,481
2011 106,324 106,324 275,484 275,484
  346,362 106,324 (91,926) 360,760 865,804 308,710 (259,762) 914,752
Chris Weston      
2008 49,927 (49,927) 120,111 17,616 (137,727)
2009 109,241 109,241 280,040 280,040
2010 96,912 96,912 252,216 252,216
2011 88,232 88,232 230,324 230,324
  256,080 88,232 (49,927) 294,385 652,367 247,940 (137,727) 762,580

Dates of allocation, prices and performance periods for outstanding DMSS awards

  Date of allocation of deferred shares Market price at date of allocation of deferred shares
(pence)
Date of allocation of investment shares Market price at date of allocation of investment shares
(pence)
Vesting date Market price at vesting date
(pence)
  1. In 2008, outstanding allocations were adjusted to take account of the dilutive effect of the Rights Issue.
  2. In 2009, the voluntary element of the DMSS was delayed until 26 May 2009 due to the executives being subject to dealing restrictions under the Company's Share Dealing Code.
  3. In respect of Chris Weston, who is based in Toronto, conditional awards have been allocated and in this respect, 117,256 shares are included above.
  4. From 2010, awards of matching shares have been structured as nil-cost options for all UK resident participants. Once vested, nil-cost options will be reported in the Directors' interests in share options disclosure within this report.
  5. For the calculation of matching shares before 2012, investment shares were grossed up (to reflect the impact of income tax and employee's National Insurance Contributions (NICs)) so that the deferred and investment shares were matched on the same basis. The number of matching shares released following the satisfaction of the performance condition is increased to reflect the dividends that would have been paid during the three-year performance period and those shares added in respect of the vested 2008 matching shares are detailed above. Dividends are paid on the deferred and investment shares to the participants on the normal dividend payment date.
  6. As at 31 December 2010, the Company's cumulative EP growth over the three-year performance period was 39% and as a result the conditional matching shares vested in full.
2008 (i) 13 Oct 08 255.50 13 Oct 08 255.50 4 Apr 11 331.60
2009 (ii) 3 Apr 09 221.75 26 May 09 248.25 3 Apr 12
2010 6 Apr 10 296.89 6 Apr 10 296.89 8 Apr 13
2011 4 Apr 11 331.60 4 Apr 11 331.60 4 Apr 14

Long Term Incentive Scheme (LTIS)

In 2011, LTIS allocations equal to 200% of base pay were awarded to Executive Directors and, at lower levels, to other senior executives. The performance measures attaching to the outstanding LTIS awards are shown in the table below.

Vesting criteria 2010 and 2011 Performance condition over three-year period
  1. EPS is the Group's diluted adjusted earnings per share.
One half on EPS growth against RPI growth(i) Full vesting for EPS growth exceeding RPI growth by 30%
Zero vesting if EPS growth does not exceed RPI growth by 9%
Vesting will increase on a straight-line basis between 25% and 100% between these points
One half on TSR measured as a percentage out-performance of the FTSE 100 Index Full vesting for TSR out-performance of the FTSE 100 Index by 7% per annum
Zero vesting if TSR out-performance of the FTSE 100 Index does not exceed 0.1% per annum
Vesting will increase on a straight-line basis between 25% and 100% for TSR out-performance of the FTSE 100 Index between these points
Vesting criteria 2009  
One half on EPS growth against RPI growth(i) As above
One half on TSR measured against a comparator group of the FTSE 100 as constituted at the beginning of the performance period Full vesting for upper-quintile ranking
Zero vesting for sub-median ranking
Vesting will increase on a straight-line basis between 25% and 100% for ranking between these points

LTIS and SLTIS allocations for Executive Directors (number of shares)

  Vested during 2011   In performance period
Date of allocation 3 Apr 08 (i) (ii) (iv) 1 Sep 08 (i) (iii) (iv)   3 Apr 09 9 Sep 09 6 Apr 10 (v) 4 Apr 11 (v)
  1. As at 31 December 2010, the Company's EPS target for awards made in 2008 had not been achieved and as a result none of the EPS shares allocated vested during the year.
  2. At the end of the performance period on 2 April 2011, the Company ranked 38th against the FTSE 100 comparator group and as a result 55% of TSR shares vested. Consequently, overall 27.5% of the original allocations were released on 4 April 2011.
  3. At the end of the performance period on 31 August 2011, the Company ranked 34th against the FTSE 100 comparator group and as a result 65% of TSR shares vested. Consequently, overall 32.5% of the original allocations were released on 6 September 2011.
  4. Additional shares were released to reflect the value of the dividends that would have been paid over the respective three-year period.
  5. From 2010, LTIS awards have been structured as nil-cost options for all UK resident participants. Once vested, nil-cost options will be reported in the Directors' interests in share options disclosure within this report.
  6. In respect of Chris Weston, who is based in Toronto, conditional awards have been allocated and are included above.
Sam Laidlaw 214,355   806,700 643,500 582,179
Phil Bentley 137,515   542,208 430,129 389,140
Mark Hanafin 138,776   467,268 389,487 352,371
Nick Luff 131,189   493,718 413,195 373,820
Chris Weston (vi) 85,039   330,614 98,000 345,458 312,538
Market price at allocation date 271.08p 292.00p   221.75p 257.40p 296.89p 331.60p
Vesting date 4 Apr 11 1 Sep 11   3 Apr 12 10 Sep 12 8 Apr 13 4 Apr 14
Market price at vesting date 331.60p 300.50p          
 

In assessing the extent to which the performance conditions have been met, the Committee uses data provided by Alithos Limited (an independent third party) for comparative TSR performance and audited results for EPS performance. The Committee also considers whether the extent to which the performance conditions have been achieved is a genuine reflection of the Company's underlying financial performance. The number of shares released will be increased to reflect the dividends that would have been paid on those shares during the three-year performance period.

In respect of LTIS awards from 2010 these were structured as nil-cost options for all UK resident participants.

The TSR graph for the three-year performance of the LTIS awards that vested in April 2011 is shown below, together with a comparison of the Company's TSR performance with that of the FTSE 100 Index for the five years ended 31 December 2011.

 

TSR – three year comparator group

Centrica and FTSE 100 Comparator Companies
Graph showing the Centrica return index and FTSE 100 from 3 April 2008 return index

Source: Alithos Limited, 3 April 2008 = 100

TSR – five year FTSE 100 Index

Centrica and FTSE 100 Index
Graph showing the Centrica return index and FTSE 100 return index

Source: Alithos Limited, 31 December 2006 = 100

 
  • These graphs have been provided by Alithos Limited (an independent third party) and have not been audited by the Company's auditors, PricewaterhouseCoopers LLP.
  • The five year comparator graph is required by Schedule 8 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. A rolling definition of the FTSE 100 has been used. This is not the same as the definition used for the purposes of the LTIS.
 

Directors' interests in share options

Full details of the options over ordinary shares in the Company held by Executive Directors who served during the year, and any movements in those options in the year, are shown below.

  Options held as at 1 January 2011 Options granted during the year Options exercised during the year Options lapsed during the year Options held as at 31 December 2011 Exercise price (pence) (i) Date from which exercisable Expiry date
  1. Where appropriate, exercise prices were adjusted to take account of the dilutive effect of the Rights Issue in 2008.
Sam Laidlaw    
Sharesave 3,977 3,977 228.16 Jun 13 Nov 13
Phil Bentley    
Sharesave 3,977 3,977 228.16 Jun 13 Nov 13
Mark Hanafin    
SESOS 336,012 336,012 255.94 Sep 08 Sep 18
Sharesave 4,727 4,727 193.54 Jun 12 Nov 12
  340,739 340,739  
Nick Luff    
Sharesave 7,392 7,392 227.24 Jun 13 Nov 13
Chris Weston    
ESOS 112,330 112,330 130.50 Mar 06 Mar 13
ESOS 120,379 120,379 199.36 Mar 07 Mar 14
ESOS 130,187 130,187 203.55 Apr 08 Mar 15
ESOS 267,920 267,920 253.80 Apr 09 Apr 16
Sharesave 4,727 4,727 193.54 Jun 12 Nov 12
  635,543 635,543  
 

Executive Share Option Scheme (ESOS)

  • Outstanding ESOS options held by Chris Weston were granted on 24 March 2003, 18 March 2004, 1 April 2005 and 3 April 2006.
  • No options have been granted under the ESOS since 2006.
  • The performance criteria have now been met in respect of all of the outstanding grants under ESOS and Chris Weston has a 10 year period from each date of grant during which he can exercise his options.

Special Executive Share Option Scheme (SESOS)

  • Outstanding SESOS options held by Mark Hanafin were granted on 26 September 2008.
  • The grant is not subject to any performance conditions and Mark Hanafin has a 10 year period from the date of grant during which he can exercise his options.

Nil-cost share options

Sharesave Scheme

  • Outstanding Sharesave options held by the Executive Directors were granted on 3 April 2008, 7 April 2009 and 6 April 2010.

Share Price

  • The closing price of a Centrica ordinary share on the last trading day of 2011, which was 30 December 2011, was 289.30 pence. The range during the year was 278.80 pence and 345.80 pence.

Retirement benefits

Phil Bentley and Chris Weston are members of the CPP. Sam Laidlaw, Mark Hanafin and Nick Luff, who all joined the Company in recent years, are not members of any of Centrica's pension schemes.

Centrica Pension Plan (CPP)

The CPP is a funded, HMRC-registered, final salary, contributory occupational pension scheme. Its rules have the following main features:

  • normal retirement at age 62;
  • right to an immediate, unreduced pension on leaving service after age 60 at own request with employer consent or on leaving service at the Company's request after age 55;
  • life assurance cover of four times base pay for death in service;
  • spouse's pension on death in service payable at the rate of 50% of the member's prospective pension and, on death after retirement, half of the accrued pension. Children's pensions on death are also payable at 25% of the member's prospective pension at normal retirement age;
  • members' contributions payable at the rate of 6% of pensionable earnings. Contributions made by the Executive Directors who are also members of the CUPS are payable at the rate of 6% of their total pensionable earnings above the scheme earnings cap;
  • pension payable in the event of retirement due to ill health;
  • pensions in payment guaranteed to increase in line with the increase in RPI (a maximum of 6% applies to pension accrued after 1 April 2002 or the date of joining the CPP if later) and in deferment pensions are increased in line with statutory requirements (broadly CPI from January 2011 with a maximum of 2.5% per annum) but with a maximum rate of 6% per annum in respect of benefits accrued prior to 29 February 2012; and
  • no discretionary practices are taken into account in calculating transfer values.

Centrica Unfunded Pension Scheme (CUPS)

All registered scheme benefits are subject to HMRC guidelines. As a result of the changes introduced by Centrica following the 2004 Finance Act, benefits at 6 April 2006 from the registered scheme, the CPP, could not exceed the Lifetime Allowance after taking account of retained benefits from all other sources notified to Centrica at this time. The CUPS provides any additional benefits in excess of the maximum amount that could be provided through the CPP on the members' uncapped pensionable earnings. The benefits that arise under CUPS are treated as being subject to the same rules as apply in respect of the registered portion of members' benefits. No individuals will receive benefits from Centrica which, when added to their retained benefits elsewhere at 6 April 2006, exceed two-thirds of their final pensionable earnings. CUPS is unfunded but the benefits are secured by a charge over certain Centrica assets. An appropriate provision in respect of the accrued value of these benefits has been made in the Company's balance sheet. Pensionable pay increases will be limited to pay reviews up to a maximum of 2% per annum with effect from 1 March 2012 for members of the CPP and CUPS.

 

Pension benefits earned by Directors in the CPP and CUPS

  Accrued pension as at 31 December 2011
£
Accrued pension as at 31 December 2010
£
Increase in accrued pension less inflation
£
Transfer value as at 31 December 2011
£
Transfer value as at 31 December 2010
£
Contribution paid in 2011
£
Difference in transfer value less contributions
£
Transfer value of increase in accrued pension excluding inflation
£
  • The accrued pension is that which would be paid annually on retirement at age 62, based on eligible service to, and pensionable earnings at, 31 December 2011. The pension accrual rates for 2010 for Phil Bentley and Chris Weston were 2.65% and 2.22% of final pensionable earnings respectively.
  • The increase in accrued pension has been adjusted to exclude inflation by revaluing the accrued pension as at 31 December 2011 by the rate of inflation (5.6%) and deducting this from the accrued pension as at 31 December 2011. The rate of inflation used for pension increases under both the CPP and CUPS was 5.6%, the annual rate to 30 September 2011.
  • A change in the transfer value calculation basis was also introduced in February 2011. Had the transfer value been calculated on the accrued pension at 31 December 2011 but using the calculation basis in force at 31 December 2010, the transfer value of the accrued pension would have amounted to £3,813,100 for Phil Bentley and £1,723,400 for Chris Weston. The difference in the transfer value less contributions would have amounted to £650,400 for Phil Bentley, and £340,300 for Chris Weston.
Phil Bentley 209,500 191,500 7,276 3,641,900 3,124,600 38,100 479,200 83,500
Chris Weston 114,300 102,500 6,060 1,574,300 1,352,500 30,600 191,200 52,600

This Report on remuneration has been approved by the Board of Directors and signed on its behalf by:

Grant Dawson
General Counsel & Company Secretary
23 February 2012