REG - ITV PLC - Annual Report and Accounts 2014 <Origin Href="QuoteRef">ITV.L</Origin> - Part 6

ITVAnnouncement

26/03/2015 10:31

- Part 6: For the preceding part double click  ID:nRSZ5364Ie 

Audit and reviewed by the Audit Committee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                                                              before consideration by the Committee.The Committee has the discretion to amend the bonus pay-out                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                              should any formulaic assessment of performance not reflect a balanced view of overall business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                              performance for the year.Two-thirds of the bonus is delivered in cash and one-third is deferred into                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                                              shares under the DSA for a period of three years. During the deferral period share awards may be                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                                                              reduced or cancelled in certain circumstances. Further detail is provided on our website                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                              www.itvplc.com/governance.Dividends are paid to participants on the deferred shares during the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                              deferral period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 New LTIP                                                         Incentivises Executives to deliver performance which is aligned to the business strategy over the longer term and the creation of shareholder value.Acts as a retention tool to retain the Executives required to deliver the business strategy.                                                                                                                            Awards are made annually with vesting dependent on business performance during the performance period. Our current operational policy is to make awards of 225% of salary each year. Under the new LTIP rules, the maximum annual award that may be granted in any financial year is 350% of salary. The Committee would consult with shareholders if it was considering increasing awards above the current operational policy.                                                                                                                                                                            Performance is measured against corporate targets closely linked to the Company's financial and strategic priorities.Performance metrics are:·     Adjusted EPS·     Non-NAR and its components·     Viewing performanceLTIP awards will vest based on financial performance. A gateway condition must be achieved before any portion of the award vests. Each performance metric will operate independently.The performance range will be determined for each metric. The proportion of each element of the award that will vest for threshold performance against a metric will be 20%.  
                                                                                                                                                                                                                                                                                                                                                                                                                                              The performance period will be three years, other than in exceptional circumstances. The Committee has                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                                                                                                                                              discretion to amend the final vesting level should any formulaic assessment of performance not reflect                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                                                                                                                                              a balanced view of the business performance during the performance period.Awards will be required to