Executive directors’ bonuses

The company sets annual bonus targets which are relevant to the objectives of the year. In 1997 the company did not succeed in meeting the targets set for the directors and no directors’ bonuses were paid.

For 1998 the directors’ bonuses depended on the extent to which three key targets were met. The targets were designed to align directors’ interests with shareholders and covered first, the company’s objectives for millennium compliance and euro conversion, second the growth in operating profit at constant exchange rates and third, the growth in earnings per share. Many of the objectives were achieved in 1998, some in full and some partially and the resulting bonus awards for the executive directors are reported in the table opposite. Maximum bonus earnings were capped at 50% of salary for executive directors in 1998. Directors’ bonuses amounted to 2.1% of total cash bonuses paid to all employees of the group.