The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008

[F1 Single total figure of remuneration for each director U.K.

10.— (1) The methods to be used to calculate the sums required to be set out in the single total figure table are—

(a) for the column headed “a”, cash paid to or receivable by the person in respect of the relevant financial year;

(b) for the column headed “b”, the gross value before payment of tax;

(c) for column “c”, the total cash equivalent including any amount deferred, other than where the deferral is subject to the achievement of further performance measures or targets in a future financial year;

(d) for column “d”—

(i) the cash value of any monetary award;

(ii) the value of any shares or share options awarded, calculated by—

(aa) multiplying the original number of shares granted by the proportion that vest (or an estimate);

(bb) multiplying the total arrived at in (aa) by the market price of shares at the date on which the shares vest; and

(iii) the value of any additional cash or shares receivable in respect of dividends accrued (actually or notionally);

(e) for the column headed “e”,—

(i) for the item in paragraph 7(1)(e)(i), the cash value;

(ii) for the item in paragraph 7(1)(e)(ii), what the aggregate pension input amount would be across all the pension schemes of the company or group in which the director accrues benefits, calculated using the method set out in section 229 of the Finance Act 2004 where—

(aa) references to “pension input period” are to be read as references to the company’s financial year, or where a person becomes a director during the financial year, the period starting on the date the person became a director and ending at the end of the financial year;

(bb) all pension schemes of the company or group which provide relevant benefits to the director are deemed to be registered schemes;

(cc) all pension contributions paid by the director during the pension input period are deducted from the pension input amount;

(dd) in the application of section 234 of that Act, the figure 20 is substituted for the figure 16 each time it appears;

(ee) subsections 229(3) and (4) do not apply; and

(ff) section 277 of that Act is read as follows—

277    “Valuation assumptions

For the purposes of this Part the valuation assumptions in relation to a person, benefits and a date are—

(a) if the person has not left the employment to which the arrangement relates on or before the date, that the person left that employment on the date with a prospective right to benefits under the arrangement,

(b) if the person has not reached such age (if any) as must have been reached to avoid any reduction in the benefits on account of age, that on the date the person is entitled to receive the benefits without any reduction on account of age, and

(c) that the person’s right to receive the benefits had not been occasioned by physical or mental impairment.”.

(2) For the item in paragraph 7(1)(e)(ii) where there has not been a company contribution to the pension scheme in respect of the director, but if such a contribution had been made it would have been measured for pension input purposes under section 233(1)(b) of the Finance Act 2004, when calculating the pension input amount for the purposes of sub-paragraph (1)(e)(ii) it should be calculated as if the cash value of any contribution notionally allocated to the scheme in respect of the person by or on behalf of the company including any adjustment made for any notional investment return achieved during the relevant financial year were a contribution paid by the employer in respect of the individual for the purposes of section 233(1)(b) of the Finance Act 2004.

(3) For the purposes of the calculation in sub-paragraph (1)(d)(ii)—

(a) where the market price of shares at the date on which the shares vest is not ascertainable by the date on which the remuneration report is approved by the directors, an estimate of the market price of the shares shall be calculated on the basis of an average market value over the last quarter of the relevant financial year; and

(b) where the award was an award of shares or share options, the cash amount the individual was or will be required to pay to acquire the share must be deducted from the total.]

Textual Amendments

F1 Sch. 8 substituted (1.10.2013) by The Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013 (S.I. 2013/1981), regs. 1, 3, Sch. (with reg. 4)