In response to questions from proxy voting agencies following the publication of our Annual Report, Smiths Group would like to clarify certain aspects of its Remuneration Policy.
The current cash pension allowance of 42% of base salary for the Chief Executive should be regarded as a legacy contract. In future any new appointee would receive a market competitive pension allowance at no more than 30% of base salary.
On the issue of the Remuneration Committee’s powers to apply discretion when making vesting decisions under the Long Term Incentive Plan (LTIP), the company confirms this is designed to balance the interests of shareholders and participants and in particular to avoid outcomes which do not reflect the true underlying performance of the business.
The current Co-Investment Plan (CIP) expires in November 2014. The company is committed to consult shareholders in 2015 on new proposals for long term incentives including the CIP and LTIP.