Auditable section

Total single figure table

IncumbentFinancial
year
Total
salary /
fees
£000
Total
other
benefits1
£000
Total
fixed
pay
£000
Annual
bonus
£000
Total
BIP2
£000
Total
CIP3
£000
Total
LTI
£000
Total
variable
pay
£000
Total
£000
Executive Directors
S.C. Harris20134701215912781,7604602,2202,4983,089
20124581185764352,1326972,8293,2643,840
D.F. Landless2013300843841321,178441,2221,3541,738
2012292823742141,428191,4471,6612,035
Non-Executive Directors
A.M. Thomson2013150150150
2012150150150
J. Vogelsang42013151515
2012575757
J.A. Biles2013616161
2012585858
K. Rajagopal2013464646
2012464646
E. Lindqvist52013565656
2012272727

Notes accompanying the total single figure table

  1. Other benefits consist of company car (or allowance), family level private medical insurance and salary supplement. Life assurance cover and sick pay are also provided.
  2. These figures relate to BIP awards made in 2011 with performance periods ending on 31 December 2013. The shares vested in March 2014 at a share price of 761.5p.
  3. These figures relate to CIP awards made in 2010 with performance periods ending 30 April 2013. The shares vested in May 2013 at a share price of 554.5p.
  4. J. Vogelsang retired at the AGM on 24 April 2013.
  5. E. Lindqvist was appointed on 1 June 2012.

Directors' shareholdings

The interests of directors and their connected persons in ordinary shares as at 31 December 2013, including any interests awarded under the CIP or BIP are presented below.

As at 27 February 2014, the interests of the Directors were unchanged from those at 31 December 2013.

BeneficialShares subject
to performance
conditions BIP1
Shares subject
to performance
conditions CIP1
Executive Directors
S.C. Harris570,030575,19614,011
D.F. Landless500,545374,61916,747
Non-Executive Directors
A.M. Thomson43,231
J.A. Biles24,172
K. Rajagopal22,368
E. Lindqvist5,000
  1. Figures relate to unvested awards under the BIP and CIP.

As described in Section A, the Board operates a shareholding retention policy under which Executive Directors and other senior executives are expected, within five years of appointment to build up a shareholding in the Company. In respect of Executive Directors the expectation is to hold at least 100% of basic salary. For the purposes of this requirement, only beneficially-owned shares will be counted. As at 31 December 2013, the Committee is satisfied that Executive Directors have fulfilled this requirement.

Comparison of overall performance and pay

The chart below shows the value over the last five financial years of £100 invested in Bodycote plc compared with that of £100 invested in the FTSE All Share Industrial Index. The points plotted are the values at financial year ends. The table also shows how total remuneration for the Chief Executive developed during the same period.

Tsr-graph.jpg

CEO total remuneration table

 20092010201120122013
Single figure of remuneration (£000)9549063,2523,8403,089
Annual variable element award (as a % of maximum) opportunity5%98%95%73%46%
Long-term incentive vesting (as a % of maximum)0%0%100%100%99%

The total value of salary, non-pension benefits and bonus decreased 15.9% for the Chief Executive in 2013 compared to the previous financial year (2012: £910,124; 2013: £765,657). The equivalent average percentage change for the senior management population as a whole was 5.5% lower than 2012. The salary increase for the Chief Executive in 2013 compared to the previous financial year was 2.7% (2012: £457,800; 2013: £470,200). Non-pension benefits decreased by 0.3% for the Chief Executive in 2013 compared to 2012 (2012: £17,414; 2013: £17,364). Bonus payable decreased by 36.1% for the Chief Executive in 2013 compared to 2012 (2012: £434,910; 2013: £278,093).

Relative importance of pay spend

The table below shows the total spend on pay, the levels of distributions to shareholders and the Company's corporation tax paid in 2012 and 2013.

2013
£m
2012
£m
Staff and employee costs242.3228.8
Distribution to shareholders24.021.3
Corporation tax22.519.3

CIP and BIP awards granted and vesting during the year

Awards or grants were made under the CIP and BIP Schemes as follows:

BIP: Awards consisting of shares were granted to both Executive Directors equivalent to the value of 175% of their base salary on 24 April 2013 which will vest after three years. Details of the awards are set out below. Awards are subject to continued employment and the achievement of the performance conditions specified in the Board report on remuneration.

CIP: Awards consisting of shares were granted to both Executive Directors equivalent in value to 2% of S.C. Harris' salary and equivalent to 6% of D.F. Landless' salary on 21 May 2013 which will vest after three years. Details of the awards are set out below. Maximum take up is 40% of their base salary and awards are subject to continued employment and the achievement of the performance conditions specified in the Board report on remuneration.

Directors' interests under the Bodycote Incentive Plan

Interests as at
Jan 2013
Awarded in
year1
Vested in
year2
At 31 Dec
2013
Market price
at award date
Market value
at date of
vesting
Vesting date
S.C. Harris819,765391,345£1.79£5.454 Mar 2013
146,776575,196£5.45Mar 2016
D.F. Landless542,878262,004£1.79£5.454 Mar 2013
93,745374,619£5.45Mar 2016
  1. Mid-market closing price of a share the day before grant was £4.82. The face value of the award to Stephen Harris was £799,634. The face value of the award to David Landless was £510,760.
  2. Subject to satisfaction of the relevant performance conditions (details of which are set out in the Board report on remuneration). The awards vesting during the year vested at a level of 98.4%.

Directors' interests under the Bodycote Co-Investment Plan

Interests as at
1 Jan 2013
Awarded in
year1
Vested in
year2
At 31 Dec
2013
Market price
at award date
Market value
at date of
vesting
Vesting date
S.C. Harris93,55082,942£1.93£5.5521 May 2013
3,40314,011£5.55May 2016
D.F. Landless18,9808,010£1.93£5.5521 May 2013
5,77716,747£5.55May 2016
  1. Mid-market closing price of a share the day before grant was £5.51. The face value of the award to Stephen Harris was £18,887. The face value of the award to David Landless was £32,062.
  2. Subject to satisfaction of the relevant performance conditions (details of which are set out in the Board report on remuneration). The awards vesting during the year vested in full.

E. LindqvistChairman of the Remuneration Committee
27 February 2014