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This report has been prepared in accordance with the Companies Act 2006 (the 'Act'). As required by the Act, a resolution to approve the report will be proposed at the Annual General Meeting of the Company at which the financial statements will be approved. The Act requires the auditors to report to the Group’s members on certain parts of the Remuneration Report and to state whether, in their opinion, those parts of the report have been properly prepared in accordance with the Companies Act 2006. The report has therefore been divided into separate sections for audited and unaudited information.
Policy on the remuneration and incentivisation of employees
In order to ensure that the Group attracts, retains and motivates Executives, the policy of the Board is to ensure that the remuneration of the Directors and senior management reflects their duties, experiences and responsibilities. All Executive Directors have contracts with an indefinite term providing for a maximum of one year’s notice. The service contracts of all Executive Directors provide for one year’s compensation on termination. All Non-Executive Directors have specific terms of engagement and their remuneration is determined by the Board within the limits set by the Articles of Association and based on independent surveys of fees paid to Non-Executive Directors of similar companies. Non-Executive Directors cannot participate in any of the Company’s share option schemes.
There are five main elements of the remuneration package for Executive Directors and senior management: • basic annual salary (including Directors’ fees) and benefits; • annual bonus payments; • share option incentives; • pension arrangements; and • performance based loyalty scheme.
Basic annual salary and benefits
Executive Directors, with the exception of the Chairman, are paid a basic salary, which is reviewed annually by the Remuneration Committee. The basic salary reflects the Executive’s experience and job responsibilities. The Remuneration Committee also takes into account information from independent sources on the rates of salary for similar jobs in a selected group of comparable companies. The fees for the Chairman of the Group, D P Levy, are payable to ENIC Group. These fees are reviewed annually by the Remuneration Committee. In addition to a basic salary, the Executive Directors are entitled to be provided with certain benefits in kind, principally the provision of private healthcare and a fully-expensed company car.
Annual bonus payments
Bonuses, where paid, are defined by the Company’s Executive Incentive Scheme, which predefines specific key performance indictors against which the Remuneration Committee evaluates the Executive’s performance in light of business risk and economic climate.
Share option incentives
An Executive Share Option Scheme exists for both Executive Directors and employees. At the current time the Group has chosen not to remunerate its employees and Directors with share options. No share options have been issued to employees and Directors since 4 April 1999. This policy will continue to be reviewed each financial year. Options granted previously were made on a discretionary basis by the Board.
The Company does not operate its own pension scheme but a stakeholder pension scheme is available to all employees. During the year the Company made payments to an external scheme on behalf of M J Collecott. The only element of remuneration which is pensionable is the basic annual salary.
Tottenham Hotspur plc
Annual Report 2010