DIRECTORS’ REMUNERATION REPORT continued
Directors’ remuneration policy
The Company’s full policy on remuneration for executive Directors was approved by shareholders on 1 May 2014 and can be found on the Company’s website at www.gkn.com/remuneration. We have included sections of the remuneration policy below that we consider would be most helpful for shareholders to have repeated here.
Policy table for executive Directors Fixed pay Base salary Purpose and link to strategy Benefits in kind Pension
• To provide appropriate retirement benefits and assist with recruitment and retention.
• To provide a market competitive • To provide benefits consistent with the scope and location of salary to recruit and retain the role. individuals with the necessary knowledge, skills and experience to deliver the Group’s strategic objectives. • Benefits are consistent with • Normally reviewed annually those provided to senior (with any increase generally managers, and principally taking effect from 1 July) taking include car and fuel allowance, into account a number of factors life assurance, disability and including individual experience, healthcare benefits. scope of the role, responsibility • Other benefits may be provided and performance, Group at the discretion of the profitability, prevailing market Committee based on individual conditions and pay awards in the circumstances and business Group generally. requirements, such as appropriate relocation and expatriate allowances and support.
• Provided by means of an allowance delivered in cash and/or as payment to a pension plan. • Where historical arrangements are in place, benefits are provided in part through membership of the GKN Group Pension Scheme 2012.
Maximum potential value
• Salary increases will normally be • Benefits are set at a level which • The maximum allowance for Directors appointed from 1 January 2013 onwards the Committee considers in line with the average increase is 25% of base salary. appropriate and are kept under awarded to other employees in review. Car and fuel allowances • Directors appointed before that date the Group. However, larger currently have legacy benefits under will not increase by more than increases may be awarded in the GKN Group Pension Scheme 2012, 15% in any one year. Some circumstances where it is a defined benefit scheme. The pension benefits (such as healthcare considered appropriate by the due under these arrangements is up to insurance) are provided through Committee, such as: two-thirds of pensionable salary third parties and therefore the — an increase in scope and (calculated on a career average basis cost to the Company may vary responsibility for service from 1 September 2007 from year to year. Relocation and — a new executive Director being onwards), with a maximum annual expatriate allowances, where moved to market positioning accrual rate of 1/30th. The Committee granted, are set at a level which over time has discretion to provide alternative the Committee considers — an existing executive Director arrangements on terms no more appropriate based on market falling below market favourable if it considers it to be in the practice and individual positioning. best interests of the Company. These circumstances. • To comply with the Regulations, Directors receive a supplementary cash the maximum potential value for allowance of up to 40% of the difference existing Directors will be no between their individual pensionable more than the amount paid to salary and base salary. the Chief Executive at any time plus 15%. Not applicable. Not applicable.
Performance Not applicable. measures
GKN plc Annual Report and Accounts 2015