Directors’ remuneration report
Composition of the Remuneration Committee
The Board has appointed a Remuneration Committee of Non-Executive Directors of the Company. The Committee consists of Mr Neil Monnery (Chairman), Mr D H Richardson, Mr H Mann, Mr A Fry and Ms C Piwnica (Mr S M D Oliver attends meetings by invitation only). Members of the Remuneration Committee have no potential conflicts of interest arising from cross-directorships and they are not involved in the day-to-day running of the Company. The Committee also received material assistance and advice on remuneration policy from the Company’s Human Resources Director, Rob Tansey. The Remuneration Committee has appointed PricewaterhouseCoopers LLP (‘PwC’) to provide advice on executive remuneration. During the year, PwC also provided other valuation services to the Group. The Chief Executive attends all meetings and provides advice on matters other than those concerning himself.
Role of the Remuneration Committee
The Remuneration Committee is responsible for the broad policy with respect to senior executives’ salary and other remuneration. It specifically determines, within remuneration principles agreed with the Board, the total remuneration package of each Executive Director and reviews with the Chief Executive the remuneration packages for other senior executives. A copy of the terms of reference of the Committee can be found on the Company’s website.
The Committee met twice during 2008/09. Details of attendance are shown in the Corporate Governance Statement on page 31.
Key developments
2008/09
In 2008/09, Dairy Crest faced a challenging economic environment. The Group generated strong cash flows and increased investment in key brands but profits declined. Payment of annual bonus is subject to achieving demanding short-term financial targets and personal objectives. These stretching financial targets were not achieved, therefore, there will be no bonus payments even though Executive Directors met many personal objectives.
Awards under the 2006 Long Term Incentive Share Plan (‘LTISP’) will vest in August 2009 in respect of the three years to March 2009. 50% of the total award was based on the Company’s Economic Profit (‘EP’) and 50% was measured against the Total Shareholder Return (‘TSR’) performance of a comparator group of companies. Dairy Crest achieved the maximum EP target of £90 million and therefore 100% of the award related to EP will be released. EP performance over the three year vesting period was improved by the acquisition of St Hubert in January 2007, a decreased exposure to commodity markets and strong financial performance in the first two years. However, the company did not meet the TSR target since recent share price performance versus the comparator group has been adversely impacted by the revised profit guidance issued in November 2008 and none of the award related to TSR will be released.
2009/10
2009/10 is expected to be a highly challenging year in light of the global economic climate. Consequently, there will be an even stronger focus on cash flow and cost control and on preserving profitability.
The Committee believes that the current remuneration framework continues to provide an appropriate link between reward and competitive performance. However, the Committee has made some adjustments in 2009, to ensure that the strategy of competitive outperformance is sustained in the current market conditions.
Key changes for 2009 are as follows:
• Base salaries and fees for Executive and Non-Executive Directors have been frozen at 2008 levels. This decision has been taken in view of the challenging cost environment within which the Company will be operating throughout the coming year.
• In the short term, there will be a strong focus on cost control, cash flow and profitability. Therefore for 2009, performance targets for annual bonus will be based 50% on Profit Before Tax, 25% on a measure of cash generation and the remaining 25% on personal objectives. The additional financial target based on a measure of cash generation places emphasis on the need to optimise cash flow and manage working capital.
• In respect of long-term performance, the Committee has decided to place greater emphasis on relative TSR and this now forms 60% of the overall LTISP.
• The achievement of the Company’s earnings objectives remains a key priority. The Committee has therefore decided to replace EP with Earnings Per Share (‘EPS’) for the 2009 LTISP awards. The Committee believes that EPS provides greater transparency for shareholders and participants as well as a stronger line of sight to focus participants on achieving the Company’s earnings objectives.
• LTISP awards for the 2009 – 2012 cycle will be based on a balance of growth in EPS (40%) and relative TSR (60%) in light of the difficult trading conditions.
• The Committee believes that the combination of TSR and EPS measures provides a strong and transparent alignment between executive and shareholder interests in the current turbulent environment.
• Benchmark adjusted profit before tax and EPS numbers for the year ended 31 March 2009 have been adjusted to exclude the impact of Yoplait Dairy Crest, which was disposed of in March 2009.
The Committee believes this 2009 remuneration structure will enable us to continue to retain and motivate a strong and experienced management team, while at the same time reflecting the current environment within which we operate, and ensuring continued alignment with shareholder interests. Furthermore Executive Directors are encouraged to build a shareholding worth 100% of salary in the Company and to this end would normally retain 50% of shares acquired from share and bonus plans until that shareholding is achieved.
Summary of remuneration policy for 2009
We ensure that remuneration packages contribute to the delivery of long-term shareholder value. This is reflected in the Company’s annual bonus scheme and LTISP awards which are explained in more detail below.
The remuneration structure and underlying principles on which the package is based, reflecting changes for 2009 are shown below.
| Objective | Basis of delivery | |
| Base salary | Reflect assessment of market practice based on role and experience. Salary is linked to performance as measured in annual performance review | Benchmarked against executives with similar responsibilities in companies of comparable size and complexity |
| Pension | To provide a market competitive level of provision with good flexibility while minimising risk to the Company | Until 1 July 2006 a final salary pension scheme. A defined contribution scheme is available for joiners after that date |
| Bonus | Ensure that annual reward is consistent with successfully achieving the short-term strategic objectives of the Group | Balance of demanding relevant short-term financial targets and personal objectives |
| Deferred bonus | Ensure appropriate balance maintained between long-term and short-term reward and to build up Directors’ shareholdings in line with policy |
Bonus over 50% of annual salary deferred for three years and issued in shares – conditional on employment until vesting date |
| LTISP | Encourage continuing improvement in Group’s performance over the longer term. Alignment of interest between participant and shareholders |
Three year performance period. 60% subject to relative TSR conditions. 40% subject to EPS growth targets |
Make up of remuneration
A significant proportion of a director’s total remuneration package is variable, being subject to the achievement of specified short-term and long-term business objectives. In applying this policy the Committee has taken account of the provisions of Schedule A of the Combined Code.
In the chart below we show the make up of remuneration under on-target performance. It can be seen that the fixed elements of pay represent around half of the maximum.
• Base salary is taken as amount paid in the year excluding any salary supplements in relation to pensions;
• Benefits are taken as the taxable benefit provided in the year;
• Pension is taken as (i) the value of one years’ pension, i.e. transfer value of the pension accrued in the year for defined benefit schemes or (ii) the amount of Company contributions for defined contribution schemes. It also includes any cash supplements resulting from contribution caps or non-membership of any Company scheme;
• Bonus is taken as the amount that would have accrued for the year ended 31 March 2009 for on-target performance; and
• LTISP awards are based on the fair value of options granted in 2008 in a manner consistent with IFRS2.
Components of remuneration
• Base salary
Salary levels for Executive Directors are reviewed annually based on an independent assessment of market practice. They are set to reflect the pay levels of executives with similar responsibilities in companies of comparable size and complexity. Base salaries for 2009 have been frozen at 2008 levels.
• Bonus
The maximum annual bonus opportunity for all Executive Directors is 100% of annual salary. There are no current plans to change the maximum bonus percentage. Payment of the bonus is subject to the achievement of demanding short-term financial targets and personal objectives. Financial targets comprise 75% of the bonus, and personal objectives 25%. From 2008/09, 40% of the bonus is payable for on-target performance.
We recognise the increased focus on cost control, cash flow and profitability and therefore, from 2009/2010 the targets for the annual bonus will be based 50% on Profit Before Tax, 25% on a measure of cash generation and the remaining 25% on personal objectives.
To ensure that an appropriate balance is maintained between long-term and short-term reward, any bonus earned over 50% of annual salary is paid in the Company’s shares and deferred for a three year period.
• Long Term Incentive Share Plan
LTISP is designed to encourage continuing improvement in the Group’s performance over the longer term. An LTISP award is payable in shares, rather than cash, to emphasise the alignment of interests between the participants and the Company’s shareholders. The LTISP has a three-year performance cycle and pre-determined performance conditions which must be met before awards under the LTISP can be exercised. Awards under the LTISP are granted annually.
For existing awards under the LTISP:
• 50% of the total award is based on the Group’s EP. EP is defined as net operating profit less a capital charge based on capital employed multiplied by the Group’s Weighted Average Cost of Capital (‘WACC’); and
• 50% is measured on TSR performance against a comparator group of food manufacturing companies.
Performance against both EP and TSR is measured over a three year period.
The targets for the 2008 and 2007 awards are as follows:
|
LTISP Award Performance Achieved |
TSR element | EP target | EPS element |
| Proportion of total LTISP award vesting |
Proportion of total LTISP award vesting |
||
| Median plus 9% pa | 50% | Maximum | 50% |
| Median | 15% | Threshold | 15% |
| Between median and median plus 9% pa |
Pro rata between 15% and 50% |
Pro rata between 15% and 50% |
The list of TSR comparators for LTISP awards was as follows:
|
Associated British Foods plc |
Premier Foods plc |
The value of shares awarded under the LTISP in any financial year is subject to limits determined by the Remuneration Committee from time to time. The current annual limit for awards is 150% of base salary and the maximum awards during the year were 100% of base salary. There is no current intention to make awards in excess of 100% of base salary in the future.
For awards made from 2009, the performance measures and structure are to be changed as follows:
• 40% of the total award will be based on EPS growth; and
• 60% will be measured on TSR performance against the FTSE 250 (excluding financial service companies, real estate companies and investment trusts).
Performance against both EPS and TSR will be measured over a three year period.
| LTISP Award Performance Achieved |
TSR element | EP target | EPS element |
| Proportion of total LTISP award vesting |
Proportion of total LTISP award vesting |
||
| Upper quartile | 60% | RPI + 8% | 40% |
| Median | 18% | RPI + 3% | 12% |
| Between median and upper quartile |
Pro rata between 18% and 60% |
Pro rata between 12% and 40% |
• Executive Share Option Scheme
The Dairy Crest Executive Share Option Scheme (‘ESOS’) was established on 30 July 1996 for Directors and certain senior management and expired in July 2006. A new ESOS was adopted at the AGM 2006 (‘ESOS 2006’). Part A is approved by the Inland Revenue and Part B is an unapproved scheme. Options are granted to participants at prices determined by the Remuneration Committee which may not be less than the market price of the shares as derived from the London Stock Exchange Daily Official List at the time of grant.
At 31 March 2009, there were no outstanding options under this scheme (2008: Nil).
• Sharesave Scheme
The Dairy Crest Sharesave Scheme was first established on
30 July 1996 and there have been seven grant phases since that date. The life of the Sharesave Scheme was extended in August 2006 to allow options to be granted until the twentieth anniversary of flotation, being August 2016. The Sharesave Scheme is open to all eligible employees and full time Directors. Employees enter into an approved savings contract over a three-year term to make monthly contributions up to an overall maximum of £250 per month. At the end of the term members have the right to buy ordinary shares in the Company at a price fixed at the time of the option grant. The price at which the options may be offered may not be less than 80% of the market price at the time of option grant.
A sharesave grant was made in December 2007 in which approximately 1,700 employees participated. A further grant is expected to be made in 2009/10.
• Pension benefits
All Executive Directors with the exception of Mr M Wilks are members of the Dairy Crest Group Pension Fund, which provides for a pension based upon an executive’s final basic salary. No bonuses are pensionable. Benefits are restricted by a scheme earnings cap which is calculated in a similar manner to the previous Inland Revenue pensions earnings cap. The following supplementary arrangements are in effect:
Mr M Allen and Mr A S N Murray received a salary supplement of 20% of base salary above the earnings cap which is included in cash allowances in the emoluments table on page 41.
Mr M N Oakes was a member of the Company’s stakeholder scheme up to the date of his resignation. This is a defined contribution arrangement operated by Zurich Insurance. The Company matched contributions paid by Mr M N Oakes at the rate of 1:2.5 up to a maximum contribution of 20% of basic salary.
Mr M Wilks is not a member of a Company pension scheme. He receives a salary supplement of 20% of base salary.
• Benefits in kind
These include the taxable value of company car benefits, life assurance cover and Company contributions to medical insurance plans.
• Service contracts
In accordance with best practice as set out in the Combined Code, all Executive Directors have a notice period not exceeding one year. All such Directors’ service contracts provide explicitly for termination payments in the event of termination by the Company other than on grounds of incapacity or in circumstances justifying summary termination. Payments on termination are calculated at 70–90% of the value of annual salary, benefits, pension and bonus for the notice period. In the case of Mr M N Oakes, Mr M Wilks and for future appointments there is a mitigation clause in the service contract with respect to termination payments such that certain compensation payments are deferred. A summary of the service agreements of the Executive Directors is available on the Company’s website.
Details of the Directors offering themselves for re-election at the forthcoming Annual General Meeting are set out in the Directors’ report on page 48.
Remuneration of the Chairman and of Non-Executive Directors
The remuneration of the Non-Executive Chairman is determined by the Board following a recommendation by the Chief Executive and the Remuneration Committee in consultation with PwC LLP. Their remuneration is determined by the Board, also in consultation with PwC LLP. The total fees for Non-Executive Directors remain within the limit of £400,000 set out in the articles of association. There are no pre-determined special provisions for Non-Executive Directors with regard to compensation in the event of loss of office.
The table below sets out the Non-Executive Director fees at 31 March 2009.
| Annual Fees | |||||
| Non-Executive Chairman | £155,000 | ||||
| Non-Executive Director base | £38,000 | ||||
| Audit Committee chair | £5,000 | ||||
| Remuneration Committee chair | £5,000 | ||||
| Corporate Responsibility chair | £5,000 |
Directors’ remuneration for the year ended 31 March 2009
| Cash allowances | |||||||||||||||||||
| Basic salary/fees |
Pension | Other | Benefits | Bonus | Compen- sation for loss of office |
Emoluments (excluding payments to defined contribution schemes) |
Pension payments to defined contribution schemes |
||||||||||||
| 2009 £000 |
2009 £000 |
2009 £000 |
2009 £000 |
2009 £000 |
2009 £000 |
2009 £000 |
2008 £000 |
2009 £000 |
2008 £000 |
||||||||||
| Non-executive chairman | |||||||||||||||||||
| S M D Oliver | 155 | – | – | – | – | – | 155 | 135 | – | – | |||||||||
| Executive Directors | – | ||||||||||||||||||
| M Allen | 469 | 70 | 1 | 27 | – | – | 567 | 748 | – | – | |||||||||
| A S N Murray | 327 | 42 | 10 | 7 | – | – | 386 | 522 | – | – | |||||||||
| M Wilks (appointed 7 Jan 2008) | 328 | 66 | 5 | 14 | – | – | 413 | 135 | – | – | |||||||||
| M N Oakes (resigned 11 Dec 2008) | 223 | – | 3 | 10 | – | 205 | 441 | 483 | 45 | 63 | |||||||||
| P Thornton (resigned 28 Nov 2008) | – | – | – | – | – | – | – | 566 | – | – | |||||||||
| 1,347 | 178 | 19 | 58 | – | 205 | 1,807 | 2,454 | 45 | 63 | ||||||||||
| Non-executive directors | |||||||||||||||||||
| D H Richardson | 43 | – | – | – | – | – | 43 | 43 | – | ||||||||||
| H Mann | 38 | – | – | – | – | – | 38 | 38 | – | – | |||||||||
| N Monnery (appointed 1 Aug 2007) | 43 | – | – | – | – | – | 43 | 27 | – | – | |||||||||
| A Fry (appointed 1 Aug 2007) | 38 | – | – | – | – | – | 38 | 16 | – | – | |||||||||
| C Piwnica (appointed 1 Aug 2007) | 43 | – | – | – | – | – | 43 | 25 | – | – | |||||||||
| D J Dugdale (retired 19 July 2007) | – | – | – | – | – | – | – | 12 | – | 63 | |||||||||
| G E Grimstone (retired 31 July 2007) | – | – | – | – | – | – | – | 14 | – | – | |||||||||
| 205 | – | – | – | – | – | 205 | 175 | – | – | ||||||||||
| 1,707 | 178 | 19 | 58 | – | 205 | 2,167 | 2,764 | 45 | 63 | ||||||||||
Basic salary, benefits and bonus are defined on pages 39 to 40. Bonuses included above include the value of any bonus payment deferred as shares. For 2008/09 this amounts to nil. For 2007/08 this amounts to £9,600 and relates to Mr M Allen only.
Cash supplements principally comprise pension related salary supplements. Mr M Allen and Mr A Murray were members of the defined benefit scheme and receive 20% of basic salary above the earnings cap. Mr M Wilks is not a member of any Company pension scheme and receives a salary supplement of 20% of basic salary. Mr M Oakes received no pension related salary supplement since he was a member of the defined contribution scheme and contributions were not subject to a cap.
Mr M Oakes resigned as a director of the Company on 11 December 2008 and all remuneration, bonus, pension entitlement and share option disclosures have been presented up to that date. He continued to be employed up to 31 March 2009 and earned a base salary of £99,745 to between 11 December 2008 and 31 March 2009. Mr M Oakes’s compensation for loss of office of £205,000 was paid in accordance with his contract.
Mr M Allen acts as Chairman of Dairy UK. His fees of £20,000 per annum in relation to these services are paid to the Company.
This information is subject to audit, except the details on service contracts, details of directors’ shareholdings, and the graph on total shareholder return.
Service Contracts
The service contracts and letters of appointment include the following terms:
| Executive Directors | Date of contract |
Notice period (months) |
||
| M Allen | 18 July 2002 |
12 |
||
| M Wilks | 7 January 2008 |
12 |
||
| A S N Murray | 20 June 2003
|
12 |
||
| Non-executive directors | Letters of appointment |
Current duration |
||
| S M D Oliver | 1 July 2000 |
July 2009 |
||
| C Piwnica | 1 August 2007 |
August 2010 |
||
| A Fry | 1 August 2007 |
August 2010 |
||
| N Monnery | 1 August 2007 |
August 2010 |
||
| H Mann | 29 May 2003 |
May 2009 |
||
| D H Richardson | 9 December 2004 |
July 2011 |
None of the Non-Executive Directors have service contracts with a notice period. Letters of appointment provide for an initial period of three years and can be extended, by mutual agreement, for subsequent periods of three years. A summary of the terms of appointment of Non-Executive Directors is available on the Company’s website. Assuming that Mr S M D Oliver is re-elected at the AGM 2009, his appointment term will be extended to July 2010.
Directors’ pension entitlements
The pension entitlements of the Directors from the Dairy Crest Group Pension Fund, a defined benefits scheme, which have been excluded from the table on page 41, were as follows:
| Age | Length of service Years |
Accumulated total accrued pension at 31 March 2008 £000 |
Accumulated total accrued pension at 31 March 2008 £000 |
Increase in accrued pension during the year £000 |
Transfer value of increase in accrued pension £000 |
|||||||
| M Allen | 49 | 17.6 | 55 | 49 | 4 | 23 | ||||||
| A S N Murray | 48 | 5.5 | 22 | 17 | 4 | 23 | ||||||
| The increase in accrued pension during the year includes the effect of inflation of 5.0% (2008: 3.9%) and is after deducting the Director’s contributions. | ||||||||||||
The transfer value of each Director’s accrued benefits at the end of the financial year is set out below. The transfer values shown in the table have been calculated in accordance with actuarial guidance note GN11. Transfer values are determined based on financial conditions at the date of calculation including stock market values and bond yields.
| As at 31 March 2009 £000 |
As at 31 March 2008 £000 |
Directors' contributions in the year £000 |
Movement less directors’ contributions £000 |
|||||
| M Allen | 555 | 446 | 15 | 94 | ||||
| A S N Murray | 215 | 152 | 15 | 48 |
Directors’ shareholdings
The (unaudited) interests of the directors at the end of the year in the ordinary share capital of the Company were as follows:
| As at 31 March 2009/retirement Beneficial |
As at 31 March 2008/retirement Beneficial |
As at 31 March 2009/retirement Deferred shares |
As at 31 March 2009/retirement Deferred shares |
|||||||
| S M D Oliver | 55,000 | 45,000 | – | – | ||||||
| M Allen* | 88,687 | 73,687 | 17,498 | 13,023 | ||||||
| A S N Murray* | 37,806 | 19,806 | 14,293 | 12,883 | ||||||
| M Wilks* | 18,500 | 500 | – | – | ||||||
| D H Richardson | 22,367 | 10,000 | – | – | ||||||
| H Mann | 20,000 | 20,000 | – | – | ||||||
| C Piwnica | 5,000 | 5,000 | – | – | ||||||
| A Fry | – | – | – | – | ||||||
| N Monnery | 5,000 | 5,000 | – | – | ||||||
| M N Oakes ** | 25,787 | 1,000 | – | – |
* These directors are potential beneficiaries of the ESOP. In addition to the shares noted above under beneficial interests they are also deemed to have a beneficial interest in all the shares held by the ESOP (see Note 26 on page 87).
** Holding at date of resignation.
Shareholdings above exclude options under the LTISP scheme and deferred shares for Executive Directors as part-payment of bonuses are shown as a separate column. These shares are released three years after the year in which the bonus was earned and no deferred bonus shares have been released. Deferred shares held at 31 March 2009 exclude any deferred shares to be issued in relation to 2008/09 bonuses, however these amounted to nil.
No director holds a non-beneficial interest in the Company’s share capital. There have been no changes in directors’ shareholdings between 31 March 2009 and 18 May 2009. The above interests exclude any rights to acquire shares under the LTISP arrangements which are set out below.
Long-term incentive share plan awards
LTISP performance conditions are set out on page 39. The performance periods commence on 1 April in each year and conclude on 31 March three years later. Actual and potential awards held by Executive Directors under LTISP at the beginning and end of the year, details of actual awards, awards vested during the year and their value are as follows:
| Year of award |
Balance at 1 April 2008 |
Awarded | Vested — exercised |
Vested — retained |
Lapsed | Balance at 31 march 2009 or date of resignation |
Market price at original award |
|||||||||
| M Allen | 2005 | 52,780 | 3,485 | (56,265) | – | – | – | 479.4p | ||||||||
| 2006 | 59,408 | 6,501 | – | – | (32,955) | 32,954 | 525.8p | |||||||||
| 2007 | 66,141 | 7,238 | – | – | – | 73,379 | 690.8p | |||||||||
| 2008 | – | 150,484 | – | – | – | 150,484 | 328.5p | |||||||||
| MN Oakes | 2007 | 47,035 | 3,106 | – | – | (50,141) | – | 690.8p | ||||||||
| 2008 | – | 97,413 | – | – | (97,413) | – | 328.5p | |||||||||
| ASN Murray | 2005 | 52,780 | 5,776 | – | (58,556) | – | – | 479.4p | ||||||||
| 2006 | 59,408 | 6,501 | – | – | (32,955) | 32,954 | 525.8p | |||||||||
| 2007 | 47,035 | 5,147 | – | – | – | 52,182 | 690.8p | |||||||||
| 2008 | – | 104,420 | – | – | – | 104,420 | 328.5p | |||||||||
| M Wilks | 2008 | – | 104,927 | – | – | – | 104,927 | 328.5p |
Notes to the LTISP table:
– M Oakes resigned as a Director of the Company on 11 December 2008. The above table reflects his lapsed 2007 and 2008 LTISP awards.
– Additional shares awarded on LTISP 2005, LTISP 2006 and LTISP 2007 represent reinvestment of dividends.
– The 2005 awards vested at 82.2% on 31 March 2008 when the share price was £4.69.
– The 2006 awards vested at 50.0% on 31 March 2009 when the share price was £2.63.
– LTISP 2007 and LTISP 2008 vest on 2 July 2010 and 1 July 2011 respectively subject to the performance conditions being fully satisfied.
There were no LTISP awards or exercises between 31 March 2009 and 18 May 2009.
Performance graph
Schedule 7A of the Companies Act 1985 requires companies to provide by graph an analysis of their performance over time. The graph below sets out for the five years ended 31 March 2009 the total shareholder return of Dairy Crest Group plc and the performance of the Food Producers and Processors sector of the FTSE and of the FTSE 250 index (excluding investment companies) of which the Company is a constituent member.
Dairy Crest – Relative Total Shareholder Return over five years
Directors’ sharesave options
At 31 March 2009 the Directors held the following share options under the Sharesave Scheme:
| As at 1 April 2008 |
Granted during the year | Exercised during the year | Lapsed during the year | As at 31 March 2009 or date of resignation* |
Exercise price (pence) |
Date when options exercisable |
Expiry date |
|||||||||
| M Allen | 1,675 | 644 | – | (2,319) | – | 388 | 01/03/09 | 31/08/09 | ||||||||
| ASN Murray | 103 | 616 | – | – | 719 | 487 | 01/03/11 | 31/08/11 | ||||||||
| MN Oakes* | 103 | 359 | – | – | 462 | 462 | 01/03/11 | 31/08/11 | ||||||||
| * M N Oakes resigned as a Director of the Company on 11 December 2008 at which point all his Sharesave Scheme options lapsed. | ||||||||||||||||
Awards granted under the Sharesave Scheme in the period from 31 March 2009 to 18 May 2009 amounted to 51. There were no Sharesave Scheme exercises during this period.
The mid-market price of the above shares as at the close of business on 31 March 2009 was 263 pence per share. During the year between 1 April 2008 and 31 March 2009 the mid-market closing price ranged from 168 pence per share to 486 pence per share.
Exercise of options
During the year ended 31 March 2009, Executive Directors exercised options and effected market sales as follows:
| LTISP | Market price (pence) |
Gain | Retained |
Date of exercise/ sale |
||||||
| M Allen | 56,265 | 469.8 | 264,344 | – | 08/09/08 |
The aggregate gain on exercise of options by Directors in the year was £264,344 (2008: £506,561).
On behalf of the Board
Neil Monnery
Chairman of Remuneration Committee
18 May 2009