Remuneration Committee
During the last financial year the Chairman established a Remuneration Committee in line with the principles and requirements set out in The Combined Code. The Remuneration Committee is appointed by and reports to the Main Board. Its primary purpose is to ensure scrutiny and oversight of the reward packages for senior managers including base pay issues and performance awards.
The current members of the Remuneration Committee are:
Hugh Duberly (Chairman)
Jenefer Greenwood, non-executive Board Member
Martin Moore, non-executive Board Member
The Chief Executive, Director of Corporate Operations and Director of Finance and Information Systems attend meetings, but absent themselves if matters relating to their individual reward packages are discussed. The secretary to the Remuneration Committee is the Head of Human Resources.
Remuneration and pension entitlements of the Board were as follows:
| Board | 2005/2006 Total Remuneration including bonus |
2004/2005 Total Remuneration including bonus |
Real increase in pension at 60 |
Total accrued pension at 60 at 31 March 2006 |
Cash equivalent transfer value as at 31 March 2005 |
Cash equivalent transfer value as at 31 March 2006 |
Real increase in cash equivalent transfer value |
|---|---|---|---|---|---|---|---|
| Ian Grant – Chairman | 47,866 | 46,699 | – | – | – | – | – |
| Roger Bright – Chief Executive | 250,000 | 214,614 | (5,725) | 73,161 | 1,303,276 | 1,477,669 | 154,268 |
| Sir Donald Curry | 18,536 | 18,084 | – | – | – | – | – |
| Hugh Duberly | 18,536 | 18,084 | – | – | – | – | – |
| Jenefer Greenwood | 18,536 | 18,084 | – | – | – | – | – |
| Martin Moore | 18,536 | 18,084 | – | – | – | – | – |
| Dinah Nichols | 18,536 | 18,084 | – | – | – | – | – |
| Ronald Spinney | 18,536 | 18,084 | – | – | – | – | – |
The Chairman and non-executive Members of the Board are initially
appointed for terms of four years with the prospect of renewal for
a further term. Roger Bright, the Chief Executive, is also
appointed on a four year contract with a notice period of six
months and his current contract expires in September 2009.
Roger Bright the Chief Executive is entitled to receive a non-pensionable annual bonus which is geared to specific targets and is approved by the Treasury. During the year he received a bonus of £65,000 (£51,153 in 2004/2005).
The salary and pension entitlements of the Members of the Management Board were:
Roger Bright the Chief Executive is entitled to receive a non-pensionable annual bonus which is geared to specific targets and is approved by the Treasury. During the year he received a bonus of £65,000 (£51,153 in 2004/2005).
The salary and pension entitlements of the Members of the Management Board were:
| Management Board | 2005/2006 Total Remuneration |
2004/2005 Total Remuneration |
Real increase in pension at 60 |
Total accrued pension at 60 at 31 March 2006 |
Cash equivalent transfer value as at 31 March 2005 |
Cash equivalent transfer value as at 31 March 2006 |
Real increase in cash equivalent transfer value |
|---|---|---|---|---|---|---|---|
| Christopher Bourchier | 105–110 | 90–95 | 2,572 | 30,240 | 366,786 | 426,026 | 57,936 |
| Giles Clarke | 120–125 | 85–90 | 1,725 | 8,489 | 55,083 | 93,483 | 48,650 |
| John Ford | 85–90 | 90–95 | 1,448 | 35,982 | 585,439 | 635,484 | 48,910 |
| Martin Gravestock | 100–105 | 90–95 | 1,578 | 39,765 | 612,871 | 803,647 | 186,000 |
| David Harris (appointment concluded 31 March 2006) |
95–100 | 90–95 | – | – | – | – | – |
| Robert Hastings (appointed 1 February 2006) |
15–20 | – | 264 | 264 | – | 2,769 | 2,215 |
| John Lelliott | 105–110 | 95–100 | 1,921 | 43,325 | 654,171 | 724,262 | 68,708 |
| Elspeth Miller (appointment concluded 2 March 2006) |
80–85 | 80–85 | 723 | 6,500 | 64,186 | 76,725 | 11,404 |
| Frank Parrish (retired 31 January 2006) |
80–85 | 90–95 | 880 | 44,425 | 787,189 | 813,673 | 25,398 |
Members of the Management Board are appointed on permanent
contracts which provide for a notice period of three months. Their
remuneration is determined by reference to individual job
responsibilities and market data and is reviewed
periodically.
Total remuneration includes salary, performance bonuses, flexible benefit and leave converted into salary. In addition to salary, non-pensionable bonuses are payable to Members of the Management Board. Members of the Management Board, excluding the Chief Executive, are entitled to individual levels of non-pensionable discretionary bonus up to 10% of their salary which is performance related and is approved by the Remuneration Committee. Members of the Management Board, excluding the Chief Executive, also receive a non-pensionable flexible benefit of 6% of base pay which is available to all office based employees. This benefit was introduced in October 2004 and replaced the existing 2004/2005 Group bonus and performance pay arrangements.
Christopher Bourchier, as Director of Rural Estates, received a car mileage allowance of £5,500 (£6,000 in 2004/2005).
Two defined benefit pension schemes operate within The Crown Estate providing retirement and related benefits to all eligible employees based on individual final emoluments.
The Crown Estate Board Members with the exception of Roger Bright, Chief Executive, are non-executive appointments and are not members of either The Crown Estate Pension Scheme or the Principal Civil Service Pension Scheme.
Pension benefits are provided to Roger Bright, Chief Executive and Members of the Management Board through the Principal Civil Service Pension Scheme or The Crown Estate Pension Scheme with the exception of David Harris who has his own personal pension scheme. Roger Bright and Martin Gravestock are members of the Principal Civil Service Pension Classic Scheme, Giles Clarke and Robert Hastings are members of the Principal Civil Service Pension Premium Scheme. The remaining members of the Management Board are ordinary members of The Crown Estate Pension Scheme. Roger Bright’s bonus is non-pensionable.
Both schemes provide benefits on a “final salary” basis at a normal retirement age of 60. Benefits accrue at the rate of 1⁄80th of pensionable salary for each year of service except for the Principal Civil Service Pension Premium Scheme which is 1⁄60th. In addition a lump sum equivalent to three years’ pension is payable on retirement. Members pay contributions of 1 1⁄2% of pensionable earnings with the exception of the members of the Principal Civil Service Pension Premium Scheme which is 3.5%. Pensions payment increase is in line with the retail price index. On death, pensions are payable to the surviving spouse at a rate of half the member’s pension. On death in service, a lump sum benefit of four times pensionable pay is payable to Crown Estate Pension Scheme members. This benefit has also been extended to Roger Bright, Martin Gravestock, Giles Clarke and Robert Hastings. Both schemes provide a service enhancement in computing the spouse’s pension. The enhancement depends on length of service and cannot exceed 10 years. Medical retirement is possible in the event of serious ill-health. In this case pensions are brought into payment immediately without actuarial reduction and with service enhanced as for widow(er) pensions.
Roger Bright
Second Commissioner and Accounting Officer
14 June 2006
Total remuneration includes salary, performance bonuses, flexible benefit and leave converted into salary. In addition to salary, non-pensionable bonuses are payable to Members of the Management Board. Members of the Management Board, excluding the Chief Executive, are entitled to individual levels of non-pensionable discretionary bonus up to 10% of their salary which is performance related and is approved by the Remuneration Committee. Members of the Management Board, excluding the Chief Executive, also receive a non-pensionable flexible benefit of 6% of base pay which is available to all office based employees. This benefit was introduced in October 2004 and replaced the existing 2004/2005 Group bonus and performance pay arrangements.
Christopher Bourchier, as Director of Rural Estates, received a car mileage allowance of £5,500 (£6,000 in 2004/2005).
Pensions
Two defined benefit pension schemes operate within The Crown Estate providing retirement and related benefits to all eligible employees based on individual final emoluments.
The Crown Estate Board Members with the exception of Roger Bright, Chief Executive, are non-executive appointments and are not members of either The Crown Estate Pension Scheme or the Principal Civil Service Pension Scheme.
Pension benefits are provided to Roger Bright, Chief Executive and Members of the Management Board through the Principal Civil Service Pension Scheme or The Crown Estate Pension Scheme with the exception of David Harris who has his own personal pension scheme. Roger Bright and Martin Gravestock are members of the Principal Civil Service Pension Classic Scheme, Giles Clarke and Robert Hastings are members of the Principal Civil Service Pension Premium Scheme. The remaining members of the Management Board are ordinary members of The Crown Estate Pension Scheme. Roger Bright’s bonus is non-pensionable.
Both schemes provide benefits on a “final salary” basis at a normal retirement age of 60. Benefits accrue at the rate of 1⁄80th of pensionable salary for each year of service except for the Principal Civil Service Pension Premium Scheme which is 1⁄60th. In addition a lump sum equivalent to three years’ pension is payable on retirement. Members pay contributions of 1 1⁄2% of pensionable earnings with the exception of the members of the Principal Civil Service Pension Premium Scheme which is 3.5%. Pensions payment increase is in line with the retail price index. On death, pensions are payable to the surviving spouse at a rate of half the member’s pension. On death in service, a lump sum benefit of four times pensionable pay is payable to Crown Estate Pension Scheme members. This benefit has also been extended to Roger Bright, Martin Gravestock, Giles Clarke and Robert Hastings. Both schemes provide a service enhancement in computing the spouse’s pension. The enhancement depends on length of service and cannot exceed 10 years. Medical retirement is possible in the event of serious ill-health. In this case pensions are brought into payment immediately without actuarial reduction and with service enhanced as for widow(er) pensions.
Roger Bright
Second Commissioner and Accounting Officer
14 June 2006