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Notes to the accounts
continued
8 Directors’ emoluments
2010 2009
£000 £000
Directors’ remuneration including Partnership bonus of 15% (2009: 13%) 3,574 3,013
The emoluments of the Chairman, who was also the highest paid director, were £868,000 (2009: £830,000), including Partnership bonus of £111,000 (2009: £94,000). The Chairman’s aggregate pension entitlement from the age of 60 accrued at the end of the year was £197,000 per annum (2009: £168,000 per annum). The transfer value of the increase in accrued entitlement during the year was £230,000.
The remuneration and benefits of five directors who are elected to the Board are excluded throughout this note on the basis that no part of their remuneration relates to their service as a member of the Board. Excluding pension fund contributions but including Partnership bonus, the emoluments of the other individual directors, excluding the Chairman, who served on the Board during any part of the year, were as follows:
2010 2009 2010 2009
£50,001 - £100,000 2 2 £500,001 - £550,000 – 1
£350,001 - £400,000 1 1 £550,001 - £600,000 2 2
£400,001 - £450,000 1 – £600,001 - £650,000 1 –
Contracts of employment for the Chairman and five directors provide for a notice period of one year. Contracts for all other directors provide for six months’ notice.
Six members of the Board qualify for the annual distribution of profit in Partnership bonus, paid at the same percentage of pay as for any Partner in employment on 31 January.
The Chairman and five members of the Board who served during the year were entitled to the use of a company car, or its cash equivalent. They also benefited from private medical insurance paid by the Partnership.
Five members of the Board belong to the Partnership’s non-contributory pension scheme. During the year five directors also belonged to a senior pension scheme which provides additional benefits intended to produce a total pension worth two-thirds of pensionable pay on retirement at age 60, after at least 20 or 30 years’ service, depending on the level of benefit. Following changes to pension legislation in April 2006, five directors have opted to have part of their pension benefit provided on an unfunded basis, and the Partnership has given undertakings that these directors will have their pension made up to the same level as that provided by the senior pension scheme. The obligation is unfunded but provision has been made for this liability.
The annual pension entitlements from the age of 60, accrued at the end of the year for individual directors, excluding the Chairman, who served on the Board during any part of the year, and the prior year amounts for the same individuals, were as follows:
2010 2009 2010 2009
£50,001 - £100,000 – – £150,001 - £200,000 2 1
£100,001 - £150,000 1 1 £200,001 - £250,000 1 1
One director does not participate in the group’s non-contributory pension scheme, but has an unfunded defined contribution arrangement under which the group accrued contributions of £337,000 (2009: £332,000) in the year.
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