Remuneration data
Sections within this page
- Table 51. What are the Executive Directors’ salaries?
- Table 52. What were the criteria for the Directors’ 2008/09 bonuses?
- Table 53. What were the targets for the Directors’ additional bonus opportunities?
- Table 54. What annual bonus was each Director awarded?
- Table 55. What emoluments did Directors receive? (£’000) (audited)
- Table 56. What emoluments did Directors receive? (£’000) (audited)
- Table 57. What LTIP and Matching Shares were awarded and vested this year?* (audited)
- Table 58. What interests in shares do Directors have?
- Table 59. Defined benefit pension scheme (audited)
- Table 60. What options over ordinary shares do Directors have? (audited)
Table 51. What are the Executive Directors’ salaries?
| Current | From 1 July 2009 | |
| F W Salway | £645,000 | £645,000 |
| M F Greenslade | £414,000 | £414,000 |
| M R Hussey | £434,700 | £434,700 |
| R J Akers | £372,600 | £372,600 |
Table 52. What were the criteria for the Directors’ 2008/09 bonuses?
| F W Salway –Total returns in excess of WACC |
Group profit | Performance of all business units | Disposal programme |
| M F Greenslade –Total returns in excess of WACC |
Group profit | Performance of Group support functions | Trillium disposal |
| M R Hussey –Total returns in excess of WACC |
Group profit | Investment performance | Business unit revenue profit |
| R J Akers –Total returns in excess of WACC |
Group profit | Investment performance | Business unit revenue profit |
Table 53. What were the targets for the Directors’ additional bonus opportunities?
| Executive Directors | Performance measures and range | Additional bonus |
| Managing Director of the Retail Portfolio |
2%–4% outperformance of the relevant Retail business total property return (TPR) Benchmark1 | 0%–200% |
| Managing Director of the London Portfolio |
2%–4% outperformance of the relevant London business total property return (TPR) Benchmark1. Delivery of major office lettings at Ebbsfleet Valley, Kent2 | 0%–200% |
| Finance Director | Effective delivery of demerger or, if higher, aggregated performance of London and Retail Businesses relative to the above measures | 0%–200% |
| Chief Executive | 50% on effective delivery of demerger and 50% on aggregated performance of London and Retail Businesses relative to the above measures or, if higher, wholly on the latter measure | 0%–200% |
- The relevant sector benchmarks are provided by IPD and relate to ungeared total property return (reflecting the increase in the value of all assets plus income streams arising from those assets in the year). IPD benchmarks are generally acknowledged as the industry standard.
- Applies only to major office lettings in excess of 4,600m2 at Ebbsfleet Valley, Kent, subject to profitability criteria.
Table 54. What annual bonus was each Director awarded?
| Executive Directors | % of year end salary | |
| Total bonus earned 2008/09 |
Total bonus earned 2007/08 |
|
| Chief Executive | 0 | 212 |
| Group Finance Director | 0 | 210 |
| Managing Director of the Retail Portfolio | 0 | 275 |
| Managing Director of the London Portfolio | 0 | 285 |
Table 55. What emoluments did Directors receive? (£’000) (audited)
| Basic salary and fees | Benefits1 | Bonuses | Deferred bonus shares2 |
Total emoluments excluding pensions |
||||
| 2008/09 | 2008/09 | 2008/09 | 2007/08 | 2008/09 | 2007/08 | 2008/09 | 2007/08 | |
| Executive: | ||||||||
| F W Salway | 640 | 22 | – | 791 | – | 535 | 662 | 1,967 |
| I D Ellis3 (resigned 12 January 2009) |
334 | 14 | 130 | 451 | – | 87 | 478 | 969 |
| M R Hussey | 431 | 19 | – | 686 | – | 509 | 450 | 1,627 |
| R J Akers | 369 | 19 | – | 563 | – | 428 | 388 | 1,365 |
| M F Greenslade | 411 | 18 | – | 501 | – | 340 | 429 | 1,243 |
| 2,185 | 92 | 130 | 2,992 | – | 1,899 | 2,407 | 7,171 | |
| Non-Executive: | ||||||||
| D Rough | 77 | – | – | – | – | – | 77 | 77 |
| W F W Bischoff (retired 1 April 2008) |
– | – | – | – | – | – | – | 65 |
| S A R Rose | 55 | – | – | – | – | – | 55 | 55 |
| B A Lerenius | 55 | – | – | – | – | – | 55 | 55 |
| A J Carnwath7 (appointed Chairman on 12 November 2008) |
155 | – | – | – | – | – | 155 | 55 |
| P Myners8 (resigned 3 October 2008) |
128 | 51 | – | – | – | – | 179 | 360 |
| C Bland | 133 | – | – | – | – | – | 133 | – |
| R Haythornthwaite (resigned 5 February 2009) |
47 | – | – | – | – | – | 47 | |
| K O’Byrne | 59 | – | – | – | – | – | 59 | – |
| 2,894 | 143 | 130 | 2,992 | – | 1,899 | 3,167 | 7,838 | |
Notes:
- Benefits consist of the provision of a company car or car allowance, private medical insurance and life assurance premiums.
- Deferred bonus shares represent the value ascribed to shares awarded under the Deferred Bonus Plan.
- Ian Ellis received fees of £29,810 from Rok plc in respect of his Non-executive Directorship of that company.
- Pensions of £67,902 (2008: £61,902) resulting from unfunded historic benefit obligations were paid to former Directors or their dependants.
- The Performance Share award for 2007/08 represented the value of shares that vested as a result of performance targets satisfied during the year to 31 March 2008.
- For awards made under the Performance Share Matching Plan, vesting of awards is equally dependent on the growth in EPS (defined to be normalised adjusted diluted EPS (NADEPS)) and TPR measured over a three year period. 25% of the total award vests for NADEPS growth of 2.5% p.a. rising on a straight-line basis to 50% of the total award vesting for achieving NADEPS of 4% p.a. The remaining half of an award vests, dependent on the Company’s TPR equalling, or exceeding, the IPD All Fund Universe Index over a rolling three year period.
- Alison Carnwath will receive a salary of £300,000 per annum for her role as Chairman of the Company.
- From 1 April 2007, the Company agreed to assume, from Marks and Spencer Group plc, the cost of supplying a driver (including all employment costs) and fleet vehicle for Paul Myners. For 2008/09, the cost of this arrangement to the Company was £51,187.
Table 56. What emoluments did Directors receive? (£’000) (audited)
| Pensions | Performance shares vested4 |
LTIP and matching shares vested5 |
Gain on exercise of share options |
|||||
| 2008/09 | 2007/08 | 2008/09 | 2007/08 | 2008/09 | 2007/08 | 2008/09 | 2007/08 | |
| Executive: | ||||||||
| F W Salway | 160 | 155 | – | 315 | 270 | 601 | – | – |
| I D Ellis3 (resigned 12 January 2009) |
83 | 103 | – | 260 | 367 | 366 | – | – |
| M R Hussey | 108 | 103 | – | 217 | 169 | 355 | – | – |
| R J Akers | 98 | 97 | – | 122 | 122 | 298 | – | – |
| M F Greenslade | 103 | 96 | – | – | 160 | 652 | – | – |
| 552 | 554 | – | 914 | 1,088 | 2,272 | – | – | |
| Non-Executive: | ||||||||
| D Rough | – | – | – | – | – | – | – | – |
| W F W Bischoff (retired 1 April 2008) |
– | – | – | – | – | – | – | – |
| S A R Rose | – | – | – | – | – | – | – | – |
| B A Lerenius | – | – | – | – | – | – | – | – |
| A J Carnwath (appointed Chairman on 12 November 2008) |
– | – | – | – | – | – | – | – |
| P Myners6 (resigned 3 October 2008) |
– | – | – | – | – | – | – | – |
| C Bland | – | – | – | – | – | – | – | – |
| R Haythornthwaite (resigned 5 February 2009) |
– | – | – | – | – | – | – | |
| K O’Byrne | – | – | – | – | – | – | – | – |
| Total | 552 | 554 | – | 914 | 1,088 | 2,272 | – | – |
Notes:
- Benefits consist of the provision of a company car or car allowance, private medical insurance and life assurance premiums.
- Deferred bonus shares represent the value ascribed to shares awarded under the Deferred Bonus Plan.
- Ian Ellis received fees of £29,810 from Rok plc in respect of his Non-executive Directorship of that company.
- The Performance Share award for 2007/08 represented the value of shares that vested as a result of performance targets satisfied during the year to 31 March 2008.
- For awards made under the Performance Share Matching Plan, vesting of awards is equally dependent on the growth in EPS (defined to be normalised adjusted diluted EPS (NADEPS)) and TPR measured over a three year period. 25% of the total award vests for NADEPS growth of 2.5% p.a. rising on a straight-line basis to 50% of the total award vesting for achieving NADEPS of 4% p.a. The remaining half of an award vests, dependent on the Company’s TPR equalling, or exceeding, the IPD All Fund Universe Index over a rolling three year period.
- From 1 April 2007, the Company agreed to assume, from Marks and Spencer Group plc, the cost of supplying a driver (including all employment costs) and fleet vehicle for Paul Myners. For 2008/09, the cost of this arrangement to the Company was £51,187.
Pensions of £67,902 (2008: £61,902) resulting from unfunded historic benefit obligations were paid to former Directors or their dependants.
Back to topTable 57. What LTIP and Matching Shares were awarded and vested this year?* (audited)
| Cycle ending |
Award date |
Market price at award date (p)† |
Shares awarded |
Shares vested |
Market price at date of vesting (p) |
Vesting date |
|
| F W Salway | |||||||
| –LTIP shares | 2008 | 29/07/05 | 1393 | 40,464 | 40,464 | 1177 | 29/07/08 |
| 2009 | 29/06/06 | 1592† | 33,063† | – | – | 29/06/09 | |
| 2010 | 29/06/07 | 1560† | 40,070† | – | – | 29/06/10 | |
| 2012 | 30/03/09 | 1095† | 58,914† | – | – | 30/03/12 | |
| –Matching shares | 2009 | 31/07/06 | 1778† | 33,628† | – | – | 31/07/09 |
| 2010 | 31/07/07 | 1527† | 34,358† | – | – | 31/07/10 | |
| 2012 | 30/03/09 | 1095† | 23,434† | – | – | 30/03/12 | |
| M R Hussey | |||||||
| –LTIP shares | 2008 | 29/07/05 | 1393 | 23,927 | 23,927 | 1177 | 29/07/08 |
| 2009 | 29/06/06 | 1592† | 21,722† | – | – | 29/06/09 | |
| 2010 | 29/06/07 | 1560† | 26,926† | – | – | 29/06/10 | |
| 2012 | 30/03/09 | 1095† | 39,705† | – | – | 30/03/12 | |
| –Matching shares | 2009 | 31/07/06 | 1778† | 20,136† | – | – | 31/07/09 |
| 2010 | 31/07/07 | 1527† | 27,146† | – | – | 31/07/10 | |
| 2012 | 30/03/09 | 1095† | 16,208† | – | – | 30/03/12 | |
| R J Akers | |||||||
| –LTIP shares | 2008 | 29/07/05 | 1393 | 20,056 | 20,056 | 1177 | 29/07/08 |
| 2009 | 29/06/06 | 1592† | 13,656† | – | – | 29/06/09 | |
| 2010 | 29/06/07 | 1560† | 23,079† | – | – | 29/06/10 | |
| 2012 | 30/03/09 | 1095† | 25,525† | – | – | 30/03/12 | |
| –Matching shares | 2009 | 31/07/06 | 1778† | 16,550† | – | – | 31/07/09 |
| 2010 | 31/07/07 | 1527† | 21,090† | – | – | 31/07/10 | |
| 2012 | 30/03/09 | 1095† | 12,330† | – | – | 30/03/12 | |
| M F Greenslade | |||||||
| –LTIP shares | 2008 | 28/09/05 | 1471 | 22,679 | 22,679 | 1285 | 28/09/08 |
| 2009 | 29/06/06 | 1592† | 20,764† | – | – | 29/06/09 | |
| 2010 | 29/06/07 | 1560† | 25,644† | – | – | 29/06/10 | |
| 2012 | 30/03/09 | 1095† | 37,815† | – | – | 30/03/12 | |
| –Matching shares | 2008 | 30/09/05 | 1479 | 16,666 | 16,666 | 1250 | 30/09/08 |
| 2008 | 01/06/06 | 1621† | 5,057† | – | – | 01/06/09 | |
| 2009 | 31/07/06 | 1778† | 18,692† | – | – | 31/07/09 | |
| 2010 | 31/07/07 | 1527† | 23,000† | – | – | 31/07/10 | |
| 2012 | 30/03/09 | 1095† | 14,654† | – | – | 31/03/12 | |
*Subject to performance tests (see our renumeration policy and philosophy).
†As adjusted for the Rights Issue in March 2009.
Table 58. What interests in shares do Directors have?
| Ordinary shares | Deferred shares | LTIP performance shares** | Matching shares** | |||||
| 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |
| F W Salway | 208,568 | 85,310 | 66,228 | 26,016 | 132,047 | 106,363 | 91,420 | 61,262 |
| M R Hussey | 101,487 | 34,957 | 70,703 | 28,780 | 88,353 | 67,764 | 63,460 | 42,606 |
| D Rough | 18,524 | 11,400 | – | – | – | – | – | – |
| S A R Rose | 16,250 | 10,000 | – | – | – | – | – | – |
| B A Lerenius | 29,250 | 18,000 | – | – | – | – | – | – |
| A J Carnwath | 116,926 | 68,620 | – | – | – | – | – | – |
| R J Akers | 68,715 | 23,058 | 46,901 | 10,989 | 62,260 | 53,159 | 49,970 | 33,918 |
| M F Greenslade | 60,542 | 14,045 | 38,680 | 6,546 | 84,223 | 64,497 | 61,403 | 58,793 |
| C Bland | 16,250 | – | – | – | – | – | – | – |
| K O’Byrne | 1,625 | – | – | – | – | – | – | – |
**Subject to performance conditions (see our renumeration policy and philosophy).
Back to topTable 59. Defined benefit pension scheme (audited)
Accrued benefit at 31/03/09 £ |
Increase in accrued benefits excluding inflation £ |
Increase in accrued benefits including inflation £ |
Transfer value of increase in accrued benefits excluding inflation £ |
Transfer value of accrued benefits at 01/04/08 £ |
Transfer value of accrued benefits at 31/03/09 £ |
Increase in transfer value net of Directors’ contributions £ |
|
| R J Akers | 27,741 | 1,578 | 2,824 | 22,016 | 352,679 | 387,102 | 28,603 |
The ‘Increase in transfer value net of Directors’ contributions’ differs from the ‘Transfer value of increase in accrued benefit’ in that it reflects changes in the transfer value assumptions and market conditions over the year less the Directors’ own contributions to the pension scheme.
The transfer values have been calculated on the basis of actuarial advice in accordance with Actuarial Guidance Note GN11. The transfer values of the accrued entitlement in respect of qualifying service represents the value of assets that the pension scheme would need to transfer to another pension provider on transferring the liability in respect of the Directors’ pension benefits that they earned in respect of qualifying service. They do not represent sums payable to individual Directors and, therefore, cannot be added meaningfully to annual remuneration.
Table 60. What options over ordinary shares do Directors have? (audited)
| Granted during year | Exercised during year | |||||||||
| Note | No of options at 01/04/08† |
Number |
Grant price (pence) |
Number |
Exercise price (pence) |
Market price on exercise (pence) |
No of options at 31/03/09† |
Exercise price (pence)† |
Exercisable dates |
|
| F W Salway | (2) | 47,793 | – | – | – | – | – | 47,793 | 1,044 | 07/2007-07/2014 |
| M R Hussey | (2) | 26,332 | – | – | – | – | – | 26,332 | 1,044 | 07/2007-07/2014 |
| (3) | 1,915 | – | – | – | – | – | 1,915 | 862 | 10/2009-04/2010 | |
| R J Akers | (1) | 11,652 | – | – | – | – | – | 11,652 | 783 | 07/2004-07/2011 |
| (2) | 8,600 | – | – | – | – | – | 8,600 | 710 | 07/2006-07/2013 | |
| (2) | 12,762 | – | – | – | – | – | 12,762 | 1,044 | 07/2007-07/2014 | |
| (3) | 829 | – | – | – | – | – | 829 | 862 | 10/2011-04/2012 | |
| 715 | – | – | – | – | – | 715 | 1,372 | 09/2011-03/2012 | ||
| M F Greenslade | (3) | 1,193 | – | – | – | – | – | 1,193 | 1,372 | 09/2011-03/2012 |
Notes:
- 2000 Executive Share Option Scheme. Vesting of awards is dependent on the Company’s growth in normalised adjusted EPS exceeding the growth in RPI by 2.5% per year.
- 2002 Executive Share Option Scheme. Vesting of awards is dependent on the Company’s growth in normalised adjusted EPS exceeding the growth in RPI by at least 2.5% per year.
- 2003 Savings Related Share Option Scheme. Not subject to performance conditions because it is available to all staff and HM Revenue & Customs’ rules do not permit performance conditions to be set out for this type of scheme.
The total number of options over ordinary shares held by F W Salway, M R Hussey, R J Akers and M F Greenslade at 31 March 2009 was 47,793, 28,247, 34,558 and 1,193 respectively. The total number of options over ordinary shares held by all Directors at 31 March 2009 was 111,791.
The range of the closing middle market prices as adjusted for the Rights Issue for Land Securities’ shares during the year was 341p to 1447p. The closing middle market price on 31 March 2009 was 437p.
†As adjusted for the Rights Issue in March 2009.