ANNUAL REPORT AND FINANCIAL STATEMENTS 2011 | 37
TSR performance compared to FTSE 250 Financial Companies Index
For the five financial periods ending 31 December
200 150 100 50 0
Non-executive Directors are not eligible to join any of the Company’s pension schemes. No pension contributions are made on their behalf and no Non-executive Director receives a salary from the Company. The remuneration of Non-executive Directors is determined by the Board as a whole within the limits stipulated in the Company’s Articles of Association. All fees are reviewed annually.
Apart from the Chairman and the Senior Independent Director, Non-executive Directors are paid a basic fee. In the year ended 31 December 2011 the Non-executive base fee was £40,000 per annum. In 2011 Non-executive Directors were separately remunerated for their services on Board Committees.
FCAM FTSE Financials Source: Datastream
(e) Policy on Pension and other benefits F&C seeks to ensure that its pension policy is in line with its business strategy, objectives, values and long-term interests.
F&C has a number of pension plans which are designed to enable employees to make provision for a suitable income in retirement. In the majority of cases these are defined contribution plans. In the UK the defined benefit plan is closed to new members. Appropriate plans are also in place in non-UK locations.
Pension payments are based on basic salary and no other cash payments or benefits are pensionable.
In addition a range of competitive employee benefits are provided including vacation and insured benefits including death in service, private medical and income protection.
(f) Policy on contracts of employment The Company’s policy regarding contracts of employment is that all senior employees, including Executive Directors, should be offered rolling contracts of no longer than twelve months. Where it is commercially appropriate to protect the Company, a longer-term initial contract with any employee, including an Executive Director, may be agreed. On completion of the initial contract, the Company’s standard terms will be applied. The Remuneration Committee, in considering contracts, has regard to compensation commitments in respect of termination and believes that these are best addressed by restricting the term of the contract.
(g) Policy on Non-executive Directors’ remuneration Non-executive Directors’ fees for the year to 31 December 2011 are set out below. None of the Non-executive Directors has a service contract. Non-executive Directors must submit to re-election on an annual basis and are not eligible for bonuses or participation in savings related share schemes or share incentive schemes.
Audit, Risk & Compliance Remuneration Nomination
The Chairman of the Board, who chairs the Nomination Committee, receives an annual all-inclusive fee of £150,000 and the Senior Independent Director receives a £15,000 supplemental fee to the Non-executive base fee.
The Remuneration Committee sets the Chairman’s annual remuneration. The Board as a whole determines the fees for Non- executive Directors, the Senior Independent director supplement and the additional fees payable for membership and chairing Board Committees. The supplemental member and Chairman’s fees paid for Board Committees in 2011 are set out below.
Committee
Member’s fee (£) 10,000
7,500 5,000
Thames River Advisory Councils 20,000
Chairman’s fee (payable in addition to
the member’s) (£) 10,000
10,000 10,000* Nil
* Currently included within the all-inclusive fees payable to Edward Bramson.
With effect from the 1st January 2012, the Board increased the Non-executive base fee to £60,000 per annum, resolved to remove the additional remuneration paid for serving as a member on the Audit, Risk and Compliance, Remuneration and Nomination Committees and increased the fee payable for chairing the Audit, Risk and Compliance, Remuneration and Nomination Committees to £12,500 per annum.
17 Jul 2006
29 Dec 2006
31 Dec 2007
31 Dec 2008
31 Dec 2009
31 Dec 2010
30 Dec 2011
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