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Summary of Executive Director Remuneration Policy and Structure in 2015
Component
Operation
Opportunity
Performance measures
Base salary
To provide appropriately
competitive level of base
salary which takes into
account the scope and
responsibilities of the role,
an individual’s experience,
and market pay levels
Reviewed annually, with any
increase applying from 1
January of each year, or
following a significant change
in responsibilities.
Benchmarked against
companies operating in a
similar sector including some
that are UK-listed; with
refeence to local market pay
levels.
The Committee also takes
into account general market
and economic conditions
and salary increases
applied across the general
workforce.
Base salary increases will
be applied in line with the
outcome of the review.
In respect of existing
Executive Directors, salary
increases are expected
to be within the range of
increases for the general
employee population. In
exceptional circumstances
(e.g. a significant increase in
role size or complexity), the
Committee has discretion
to make appropriate
adjustments to salary levels
to ensure they remain
market competitive.
Not applicable
Benefts
To provide benefits that are
appropriately competitive
within the relevant labour
market
Benefits comprise various
cash allowances in relation
to travel, cost of living,
housing and special skills.
An annual ticket allowance
is also payable. As with
all employees, Executive
Directors benefit from the
Company medical scheme
and life insurance.
Benefits may vary by role
and are subject to the
review and approval of the
Committee.
Not applicable
Short Term Incentive Plan
(‘STIP’)
To reinforce the delivery
of key short- and medium-
term business and personal
objectives
The STIP is reviewed
annually prior to the start
of each financial year to
ensure the opportunity,
performance measures and
weightings are appropriate
and continue to support the
Company’s strategy.
For Executive Directors,
the STIP is delivered 50%
in cash and 50% is deferred
into Kuwait Energy shares
for a period over three
years, subject to a minimum
deferral of US$3,000.
Maximum annual
opportunity of up to 18 base
monthly salaries for the
Executive Chairman and
the CEO, and 14 monthly
salaries for the CFO
.
The STIP is based on
Company performance as
measured by a corporate
scorecard, subject to an
individual performance
multiplier.
The Committee uses its
judgment to determine the
overall scorecard outcome,
based on the achievement
of the specific targets and
the Committee’s broad
assessment of Company
performance.
Details of the measures and
weightings applicable for
2015 are provided in the
relevant section, below.
Exceptional-Value Creation
Award (‘EVCA’)
To reward significant value
creation through spot
bonuses
The EVCA is reviewed
annually by the RemCo.
All EVCAs to Executive
Directors must be approved
by the RemCo.
An EVCA budget is set at
the beginning of the year
and included within the
Annual budget.
A maximum of 5% of the
Group employees, including
Executive Directors, are
eligible each year with the
total pot capped by the
agreed budget.
Determined by the
Management and approved
by the RemCo for Executive
Directors.
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