36 | GOVERNANCE | Directors’ Remuneration Report
(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, such as 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 2012 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. 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 of £60,000 per annum. 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. An additional fee of £12,500 per annum is paid to the Chairman of each of the Board Committees. A fee of £20,000 is paid to members of the Thames River Advisory Councils.
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 of Board Committees.
Statement on Executive Directors’ service contracts and Non-executive Directors’ letters of appointment Messrs Wilson and Logan have current service contracts with the Company that are for a rolling period of one year, details of which are summarised below. No employee of the Group has a service contract that cannot be brought to an end within one year.
Executive Directors Richard Wilson David Logan
Date of contract 4 December 2012 31 July 2006
Notice period Twelve months Twelve months
Unexpired term
Rolling twelve months Rolling twelve months
Chairman and
Non-executive Directors Edward Bramson
Keith Bedell-Pearce Ian Brindle Keith Jones Jeff Medlock
Derham O’Neill Keith Percy
Kieran Poynter
Date of contract 9 May 2012
9 May 2012 9 May 2012 9 May 2012 9 May 2012 9 May 2012 9 May 2012 9 May 2012
Notice period One month
One month One month One month One month One month One month One month
Provisions for compensation payable by the Company on early termination £000
395 310
Provisions for compensation payable by the Company on early termination £000
Nil Nil Nil Nil Nil Nil Nil Nil
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