"Following the publication of the Annual Report 2015, the Company wishes to make the following
clarifications and amendments in respect of the Directors' Remuneration Report (DRR). In the table showing the calculation of the outcome of the 2014/15 annual bonus:
The currency of the EBITDA and Free Cash Flow targets and performance is to be read as
'US$ million' (and not £ million as is shown)
The 'Annual Bonus' scheme for financial year ending 31st March 2015, is a balanced score card of performance metrics where the weightage for financial performance, a consolidated set of EBITDA and Free Cash Flow metrics, is at 60% and other metrics like operational, strategic & sustainability comprising the balance 40%.
The actual EBITDA for the said financial year was US$3,741m and the corresponding Free
Cash Flow was US$2,578m as reported in other sections of the Annual Report. Page 111 of the Directors Remuneration Report section reflects numbers that need to be amended to reflect the above. Thus the EBITDA at US$3,744m and corresponding Free Cash Flow at US$2,519m as currently reflected on the said page may be substituted with the right numbers as above.
The revised annual bonus table is set out on the next page.
As a result of the above amendment, the final pay out as a percentage of maximum pay out opportunity is calculated at 37.66% against 37.20% published in the DRR. However the remuneration committee has decided to retain the same pay out percentage of 37.20% as reflected currently in the published DRR and Annual Report."
Factors | Parameters | Weighting as a percentage of total bonus | Actual achieved (£'m) | Threshold performance hurdle (33% of maximum payable) | On-target performance hurdle (70% of maximum payable) | Achievement | Payout (% of max) | Payout % of total |
Financial Performance | EBITDA | 30.00% | 3,741 | 3,744 | 5,349 | 69.94% | 33.30% | 9.99% |
Financial Performance | Free Cash Flow | 30.00% | 2,578 | 2,286 | 3,265 | 78.96% | 44.26% | 13.28% |
Financial Performance | Subtotal financial (As per Scheme) | 60.00% | 70.00% | 100.00% | 74.45% | 38.77% | 23.26% | |
Sustainability and Safety Scorecard | Sustainability | 7.50% | 72.00% | 5.40% | ||||
Sustainability and Safety Scorecard | Safety | 7.50% | The safety target was not met so no bonus was payable under this element | 0.00% | 0.00% | |||
Personal / Strategic Objectives | Stakeholder management and regulatory | 25.00% | Parameters: PSC Extension, Divestment of Govt. Share, Simplification of Group Structure, Iron Ore Export Duty and Bauxite Supply | 36.00% | 9.00% | |||
Total | 100.00% | Payout as a Percentage of Maximum Payout Opportunity | 37.66% | |||||
Payout as a Percentage of Maximum Payout Opportunity (retained at) | 37.20% | |||||||
Payout | 150.00% | Paid as a Percentage of Base Pay (Calculated as per Total Score) | 55.80% |
distributed by |