Percentage change in the remuneration of the Chief Executive
The table below illustrates the percentage change in the Chief Executive’s salary, benefits and bonus compared to the senior management population. For the purposes of the table below, we have expanded our definition of senior management to include approximately 480 employees worldwide. This group is considered appropriate as it includes employees with international responsibilities who have similar remuneration arrangements to the Chief Executive.
Chief Executive (%) Senior Management (%)
Deloitte have been appointed as auditors to the Group with effect from the 2016 financial year. As a result, we have started a competitive selection process to appoint a new independent adviser to the Committee. The aim is to appoint the new adviser with effect from April 2016. Further details will be provided in next year’s report. During the year, we also consulted with Mike Turner (Group Chairman), Nigel Stein (Chief Executive) and Douglas McIldowie (Group HR Director) and invited them to attend meetings as necessary. We were also supported by the Global Reward function, Group Finance and Company Secretariat as appropriate. In consulting with senior management, we took care to ensure there were no conflicts of interest. Committee members and other attendees were not present in any matter that directly concerned their own remuneration or terms of service.
Salary Benefits Annual bonus
2.6 0 31.3
3.61 0.8 16.4
Salary increases reflect additional responsibilities and increases awarded in certain high inflation countries.
The increase for the Chief Executive’s salary was in line with those for employees in the UK (2.6%) and globally (3.6%).
Advisers to the Committee
We appointed Deloitte LLP (Deloitte) as our independent adviser in 2012 following a selection process. Their performance and role are reviewed regularly. During the year, Deloitte provided advice on all aspects of remuneration arrangements for executive Directors and senior executives below Board level as well as market updates and practices. The fees for this, on a cost incurred basis, were £99,100. Deloitte also provided other services to the Group in relation to tax support to GKN employees on international assignments, other taxation matters including employment tax and corporate tax, and accounting compliance. Deloitte are a member of the Remuneration Consultants Group and voluntarily operates under the code of conduct in relation to executive remuneration consulting in the UK. The Committee is satisfied that the advice it receives from Deloitte is objective and independent.
The Board recognises that executive Directors may be invited to become non-executive Directors of other companies and that the knowledge and experience from such appointments can benefit both the Director and the Company. Executive Directors may accept one non-executive directorship with another company (excluding that of chairman of a FTSE 100 company) subject to review by the Board in each case and the appointment not leading to any conflicts of interest. Directors may retain the fees received for such appointments. Nigel Stein was appointed a non-executive director of Inchcape plc on 8 October 2015 and received fees of £13,330 from his appointment date to 31 December 2015. Andrew Reynolds Smith is a non-executive director of Morgan Advanced Materials plc and received fees of £35,250 from 1 January 2015 to 25 September 2015 (when he resigned from the GKN Board). The fees for these appointments were retained. Adam Walker was appointed a non-executive director of Kier Group plc with effect from 1 January 2016.
GKN plc Annual Report and Accounts 2015