The company has established a Remuneration Committee which is constituted in accordance with the
recommendations of the Combined Code. The members of the committee are JN Bridge and M Groak who are
both non-executive directors and the committee is chaired by JN Bridge.
In determining the directors' remuneration for the year, the committee consulted the Chief Executive DS Kell
and the Finance Director CD Brooks about its proposals.
The policy of the committee is to reward executive directors in order to recruit, motivate and retain high quality
executives within a competitive market place.
There are four main elements of the remuneration packages for executive directors and senior management:
Basic salary
Basic salary is reviewed annually in March with increases taking effect from 1 April. In addition to basic salary, the
executive directors also receive certain benefits in kind, principally private medical insurance.
Annual bonus
The committee establishes the objectives which must be met for each financial year if a cash bonus is to be paid.
The purpose of the bonus is to reward executive directors and other senior employees for achieving above average
performance which also benefits shareholders. Whilst bonuses awarded in prior years relating to prior year
performance were paid in 2008, no bonuses were awarded or paid in relation to 2008 performance.
Share options
The executive and non-executive directors have options granted to them under the terms of the Share Option
Scheme. There are no performance conditions attached to the share options. No share options were awarded in
2008.
Executive directors are members of a money purchase pension scheme to which the group contributes. Their
dependants are eligible for dependants' pension and the payment of a lump sum in the event of death in service.
No other payments to directors are pensionable.