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Average FTSE 100 Executive & Management Reward Survey 2015 FTSE 100 participants

November 2015

Average FTSE 100

Executive & Management Reward Survey 2015 FTSE 100 participants PwC Contents

Contents

Foreword 1

Individual benchmarks 2

Appendices 5

Appendix I: Methodology 6 Appendix II: Job descriptions 15 Appendix III: Contacts 20

Average FTSE 100

Foreword Individual

benchmarks

Appendices

Executive & Management Reward Survey 2015 FTSE 100 participants PwC 1

Welcome to the 2015 PwC Executive Reward Survey, which I am pleased to report is our most extensive to date. This year’s survey spans reward data from 230 companies who together provided salary, benefits and incentive details for over 15,000 incumbents across seven levels of management.

From our research, we have found that a number of key themes are dominating the 2015 reward agenda at executive level which are having an impact on pay at the tiers below. Shareholders have been focussing on quantum, the level of stretch in performance targets and the quality of incentive target disclosure. While there have been undoubted improvements in retrospective incentive target disclosure over the last year, it seems shareholders still need to be convinced that there is a clear link between pay and performance. This of course raises the perennial question about whether current incentive models are fit for purpose.

But while executive director remuneration attracts the headlines, our survey is equally focussed on reward issues facing the wider management population. Some of the themes emerging are:

Survey participants anticipate that forthcoming salary budgets will be largely the same as the prior year. But it may become more difficult to hold the line in the face of broader earnings growth across the economy and the need to attract and retain talent;

We are seeing pay “hotspots” and more focussed differentiation in salary increases outside of the 2-3% range in key functions and for key talent;

Bonus opportunities are largely unchanged at most tiers. But bonus awards have fallen slightly at more junior management levels;

There are other visible changes to the reward arrangements of managers below board level. One notable trend is that shareholding requirements are increasingly cascading down to two to three levels below the main board.

Use of bonus deferral in shares also appears to have increased at these levels.

The shape of pensions continues to evolve, and the impact of further tax changes next year will further impact the landscape.

More than ever, companies need to ensure they are getting the best value from the reward spend. If pay growth does gather momentum over the coming year then employers will have to carefully balance the need to retain and attract staff with cost control and driving productivity.

Unsurprisingly, performance management and its link to reward and the wider governance challenge in a regulated environment topped our poll of the issues likely to dominate the 2015/16 reward agenda.

Addressing the root causes of gender pay gaps, rethinking flexible benefits in a diverse workplace are also high on the agenda.

We hope you find our survey findings a useful starting point in helping you meet your key objectives during the coming year and to support you in meeting the challenges ahead. We would be happy to discuss the results with you.

Marcus Peaker Partner T: 020 7804 0249 M: 07808 404044 E: [email protected]

0% 10% 20% 30% 40% 50% 60% 70%

Performance management

Remuneration governance

Equal pay

Compensation technology and systems

Introduction of flexible benefits

Reduction in LTA from April 2016

Sales incentives

Changing flexible benefits platform

Putting in place a global share plan

Changing structure for mobile employees

Foreword

Average FTSE 100

Foreword Individual

benchmarks

Appendices


Individual benchmarks

Average FTSE 100

Foreword Individual

benchmarks

Appendices


Group CEOGroup tier 1

FTSE 100 companiesJob title: Chief Executive Officer

Total remuneration

Expected value Package composition

LQ

M

UQ

Incumbent

Position

Market position Performance scenarios

Reward components

Annual bonus Long-term incentives

LQ

M

UQ

Incumbent

Deferred annual bonus (DAB) Pension

LQ

M

UQ

Incumbent

Sample information Job matching information

LQ

M

UQ

Incumbent 17,093 15,622 - - - -

17,832 14,854 84% 68,274 - -

8,285 5,200 40% 25,682 - -

116 1 - FTSE 100

4,854 2,040 20% 7,191 - -

Revenues Employees

£'m £'m % revenues # £'m #

Group Division/unit Sample

size

Group

tier

Divisional

tier

Comparator

groupMarket value Revenues UK revenues Employees

- N - 245

30% 30 324

30% 12% 60 212

91% 658 30%

74% 11% 72% 508 36% 22% 51%

N N - - N - N

rate £'000

65% 442 10% 22% 60 106

% roles % plans % DAB £'000 % roles % salary % roles % salary % roles

Total EV

Eligibility Eligibility Maximum EV Eligibility Contribution Eligibility Contribution Eligibility Accrual

DAB DAB matching award Defined contribution Salary supplement Defined benefit

1,570 N - - 1,563

- 6 725

98% 188% 154% 945 Y 250%

1,023 9% 255%

553 135% 815

£'000

107% 200% 162% 1,163

90% 180% 130% 778 90%

300% 1,635 - 341 1,881

75% 150% 90%

179 1,085200%

EV Eligibility Policy EV

% salary % salary % salary £'000 % roles % salary

Target Maximum Actual EV Eligibility Policy

£'000 % roles % salary £'000

Annual bonus Shares/Cash Options Total EV

M M - UQ M - UQ M - UQ

1,011 2,231 3,761 3,997

843 1,780 3,209 3,454

641 1,234 1,974 2,126

844 1,662 2,682 2,924

Base TC TDR TR

£'000 £'000 £'000 £'000

Fixed Variable

0% 20% 40% 60% 80% 100%

Short Long

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Base salary Total cash Total directremuneration

Totalremuneration

LQ - M M - UQ Incumbent

0

2,000

4,000

6,000

8,000

10,000

12,000

Weak Threshold Average Strong Outstanding

Base salary Pension Annual bonus LTI

LQ UQM

Market data:

Incumbent data:

Incumbent

Average FTSE 100

Foreword Individual

benchmarks

Appendices


FinanceFunction head; Group tier 2

FTSE 100 companiesJob title: Chief Financial Officer

Total remuneration

Expected value Package composition

LQ

M

UQ

Incumbent

Position

Market position Performance scenarios

Reward components

Annual bonus Long-term incentives

LQ

M

UQ

Incumbent

Deferred annual bonus (DAB) Pension

LQ

M

UQ

Incumbent

Sample information Job matching information

LQ

M

UQ

Incumbent 17,235 14,787 - - - -

18,716 13,971 92% 83,069 - -

9,236 5,200 42% 24,274 - -

103 2 - FTSE 100

4,942 2,039 20% 6,050 - -

Revenues Employees

£'m £'m % revenues # £'m #

Group Division/unit Sample

size

Group

tier

Divisional

tier

Comparator

groupMarket value Revenues UK revenues Employees

- N - 137

30% - 177

25% 8% 60 123

91% 320 25%

77% 12% 60% 296 43% 18% 53%

N N - - N - N

rate £'000

51% 214 10% 20% - 54

% roles % plans % DAB £'000 % roles % salary % roles % salary % roles

Total EV

Eligibility Eligibility Maximum EV Eligibility Contribution Eligibility Contribution Eligibility Accrual

DAB DAB matching award Defined contribution Salary supplement Defined benefit

813 N - - 811

- 68 417

86% 164% 127% 504 Y 200%

633 10% 217%

313 129% 406

£'000

100% 200% 142% 629

80% 150% 113% 433 93%

250% 883 - 199 917

65% 125% 80%

103 658200%

EV Eligibility Policy EV

% salary % salary % salary £'000 % roles % salary

Target Maximum Actual EV Eligibility Policy

£'000 % roles % salary £'000

Annual bonus Shares/Cash Options Total EV

M - UQ M - UQ M - UQ M - UQ

625 1,242 2,038 2,241

534 1,033 1,781 1,918

415 776 1,156 1,238

501 953 1,634 1,741

Base TC TDR TR

£'000 £'000 £'000 £'000

Fixed Variable

0% 20% 40% 60% 80% 100%

Short Long

0

500

1,000

1,500

2,000

2,500

Base salary Total cash Total directremuneration

Totalremuneration

LQ - M M - UQ Incumbent

0

1,000

2,000

3,000

4,000

5,000

6,000

Weak Threshold Average Strong Outstanding

Base salary Pension Annual bonus LTI

LQ UQM

Market data:

Incumbent data:

Incumbent

Average FTSE 100

Foreword Individual

benchmarks

Appendices


Appendix I: Methodology 6

Appendix II: Job descriptions 15

Appendix III: Contacts 20

Appendices

Average FTSE 100

Foreword Individual

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Appendices


Total remuneration terminology

Definition Comments

Base salary

= Annual base salary

This does not include the following:

Benefits

Fees received for roles at other organisations

Salary supplements for pensions

Fixed allowances or role based allowances

Total cash

= Base salary + Annual bonus

This includes both cash annual bonus and bonus deferred in the year, but excludes any matching element

Total direct remuneration

= Total cash + value of long-term incentives

This includes:

Share awards

Share options

Matching element of deferred bonus

Long-term cash plans

Any other long-term incentives (excluding special one-off arrangements)

Total remuneration

= Total direct remuneration + value of pension + fixed allowances

This includes:

Defined benefit arrangements

Defined contribution arrangements

Salary supplement for pensions

Fixed allowances or role based allowances

Other definitions

Term Definition

Short-term remuneration Base salary + Annual bonus = Total cash

Long-term remuneration Long-term incentives + Pension

Fixed remuneration Base salary + Pension

Variable remuneration Annual bonus + Long-term incentives

EP Economic profit

ROIC Return on invested capital

PBT Profit before tax

TSR Total shareholder return

EPS Earnings per share

ROCE Return on capital employed

Appendix I: Methodology

Average FTSE 100

Foreword Individual

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Appendices


Financial and other assumptions

Assumption Approach

Revenue/turnover Revenue disclosed at the company’s most recent year end

Market capitalisation As at 1 September 2015

Combined market value of whole company is used

Unavailable for unlisted organisations

International involvement Taken as disclosed in latest annual report

FTSE Ranking Six month average of FTSE rank to 1 September 2015 using month end ranking

For unlisted organisations, a theoretical ranking has been determined by analysing market value to earnings ratio of listed organisations

Exchange rate conversion Where data has not been provided in GBP, it has been converted using the 1 year average of daily exchange rates to 1 September 2015

Share price volatility Historic volatility over a 6.5 year period to 1 September 2015 (using weekly data)

Dividend yield Dividend yield at 1 September 2015

Option expected life If provided, half way between vesting and expiry, otherwise 6.5 years

Risk-free rate Zero coupon yield on 6.5 year UK government bond at 1 September 2015

Forfeiture assumption Nil: assumes executive remains in role

Pensions annuity £20:£1 of pensions

Discount rate less salary escalation (for defined benefit pensions valuation)

0% p.a.

Discount rate less inflation assumption (for defined benefit pensions valuation)

2% p.a.

Sources: Datastream and Bank of England

Average FTSE 100

Foreword Individual

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Appendices


Summary of valuation methodology We provide analysis using two types of remuneration data, and two different approaches.

Data types

Policy remuneration data Actual remuneration data

Analysis is forward looking Analysis is backward looking

Captures the latest remuneration ‘policies’, which is a best estimate of forward looking remuneration

Measures remuneration received in the most recent year, based on actual payment made

Reflects future policy grant levels of annual bonus and long-term incentives

For annual bonus and long-term incentives, we use annual bonus received and actual awards granted in long-term incentive arrangements

Approaches

Expected value approach Payout valuation approach

Aims to calculate a consistent value for each element of remuneration

Projects the potential value of payout of the remuneration package under different scenarios

Presents a valuation of remuneration by putting an overall value of each remuneration element

Presents the relative gearing in the remuneration package

Takes into account all potential performance conditions and share price growth outcomes for performance linked remuneration

Impact of performance conditions on long-term incentives: the assumed valuation factor applied to the underlying equity instrument

LTIs (ex. share options) Share options

Valuation factor 60% 70%

Average FTSE 100

Foreword Individual

benchmarks

Appendices


Summary of the expected value valuation approach using policy remuneration data

Remuneration component

Valuation approach

Base salary Current annual salary

Annual bonus In order of preference:

On target bonus

60% of maximum bonus

Last paid bonus

Long-term incentives In order of preference, grant level taken as:

Policy award level

Latest face value of award

75% of maximum award

Expected value of award determined using option-pricing models, adjusted to incorporate the impact of performance conditions

Deferred annual bonus matching arrangements are included in the long-term incentive valuations. It is assumed that the incumbent commits in the following basis:

Minimum deferral if minimum is greater than 50% of bonus

Maximum deferral if maximum is less than 50% if bonus

Otherwise 50%

Pension Salary supplements and Defined Contribution plans are taken as the value of one year’s employer contributions

Defined Benefit plans taken as the actuarial value of one year’s pension accrual with allowances for future salary increases less employee contributions

No differentiation between values for approved and unapproved plans

Summary of the expected value valuation approach using actual remuneration data


Valuation approach

Base salary Current annual salary

Annual bonus Last paid bonus

Long-term incentives Latest face value of award or latest bonus deferral allowing for maximum potential vesting

Expected value of award determined using option-pricing models, adjusted to incorporate the impact of performance conditions

Volatilities and dividend yields specific to each company are used in the valuations, and adjustment factors are applied based on the type of performance condition

Pension Salary supplements and defined contribution plans are taken as the employer contributions made over the year

Defined benefit plans taken as the actuarial value of one year’s pension accrual with allowances for future salary increases less employee contributions

No differentiation between values for approved and unapproved plans

Average FTSE 100

Foreword Individual

benchmarks

Appendices


Example valuation calculation using the expected value approach with policy remuneration data


Data

Base salary Current salary: £500,000

Annual bonus On target: 100% salary

Maximum: 200% salary

Deferred matching award on annual bonus

Compulsory deferral: 50% bonus

Maximum deferral: 100% bonus

Maximum match: 1 for 1

Performance measures: 50% EPS, 50% TSR

EPS vesting schedule: 30% vests at entry, 100% vests at maximum

TSR vesting schedule: 30% vests at 50th percentile, 100% vests at 80th percentile

Performance share plan

Face value policy award: 225% of salary

Performance measures: 100% TSR


Pension Defined benefit final salary pension. Accrual: 30ths

Employee contributions: 5%

Calculation


Valuation approach Value (£’000)

Base salary Current salary (£500,000) 500

Annual bonus On target: 100% salary 500


50% bonus deferred

1 for 1 maximum match

50% EPS and 50% TSR performance

Valuation factor 60%

150


225% salary face value

100% TSR performance

Valuation factor: 60%

675

Pension Actuarial value of 1 year’s defined benefit accrual less employee contributions

308

Average FTSE 100

Foreword Individual

benchmarks

Appendices


Valuation



Base salary Base salary 500

Total cash Base salary + annual bonus 1,000


Total cash + long-term incentive expected value 1,825

Total remuneration Total direct remuneration + pension value 2,133

Fixed Base salary + pension value 808

Variable Annual bonus+ Long-term incentives 1,325

Short-term Base salary + annual bonus 1,000

Long-term Long-term incentives + pension value 1,133

Example valuation calculation using the expected value approach with actual remuneration data


Data


Annual bonus Last paid £100,000


£50,000 deferred (i.e. 50% of bonus)






Face value last award: 225% of salary





Calculation



Base salary Current salary (£500,000) 500

Annual bonus Last paid (£100,000) 100


£50,000 deferred

1 for 1 maximum match

50% EPS and 50% TSR performance


30


£1,125,000 last award

100% TSR performance


675


308

Average FTSE 100

Foreword Individual

benchmarks

Appendices


Valuation



Base salary Base salary 500

Total cash Base salary + annual bonus 600


Total cash + long-term incentive expected value 1,305

Total remuneration Total direct remuneration + pension value 1,613

Fixed Base salary + pension value 808

Variable Annual bonus+ Long-term incentives 805

Short-term Base salary + annual bonus 600

Long-term Long-term incentives + pension value 1,013

Summary of the valuation approach for potential payouts

Potential payout projections are determined over a three-year period. It is assumed that all plans and

performance conditions are tested after three years.

We look at five different levels of performance:

Level of performance Definition

Weak Broadly equivalent to lower quartile performance for incentives

Threshold Broadly equivalent to below median performance for incentives

Average Broadly equivalent to median or target performance for incentives

Strong Broadly equivalent to upper quartile performance for incentives

Outstanding Broadly equivalent to upper decile performance for incentives

Performance shares, share options, DAB match

Level of performance TSR (p.a.) Annual bonus TSR (percentile ranking)*

EPS and other conditions (vesting level)

Weak (5)% Nil 25% Nil vesting

Threshold 0% 25% of maximum 40% Minimum vesting

Average 5% 60% of maximum 50% Half way between minimum and maximum vesting

Strong 15% 80% of maximum 75% Maximum vesting

Outstanding 25% Maximum 100% Maximum vesting

Average FTSE 100

Foreword Individual

benchmarks

Appendices


Given the TSR % ranking for a particular level of performance, the vesting schedule specific to the company is used to determine the level of vesting.

Share price growth at each performance level is determined by deducting the appropriate dividend yield for the company from the TSR growth applying at that level.

Example valuation calculation using the potential payouts approach with average and outstanding performance data

Remuneration component Valuation approach


Annual bonus On target: 100% salary. Maximum 200% salary

Deferred annual bonus match

Compulsory deferral: 50% bonus. Maximum deferral: 100% of bonus





Performance share plan Face value policy award: 225% of salary





Calculation


Average performance Outstanding performance



Base salary Current salary (£500,000) 500 Current salary (£500,000) 500

Annual bonus On target bonus: 100% target

500 Maximum bonus: 200% salary

1,000

Deferred annual bonus match

50% bonus deferred

Vesting 47.5%, based on average of EPS: 65% and TSR: 30%

TSR growth: 5% p.a.

137 50% of bonus deferred

Vesting: 100% based on average of EPS: 100% and TSR:100%

TSR growth: 25% p.a.

977

Performance share plan 225% face value

Vesting: 30%

TSR growth: 5% p.a.

391 225% face value

Vesting: 100%

TSR growth: 25% p.a.

2,197


308 Actuarial value of 1 year’s defined benefit accrual less employee contributions

308

Average FTSE 100

Foreword Individual

benchmarks

Appendices


Valuation


Average performance Outstanding performance



Base salary Base salary 500 Base salary 500

Total cash Base salary + annual bonus 1,000 Base salary + annual bonus 1,500

Total direct remuneration Total cash + long-term incentive expected value

1,528 Total cash + long-term incentive expected value

4,674

Total remuneration Total direct remuneration + pension value

1,836 Total direct remuneration + pension value

4,982

Average FTSE 100

Foreword Individual

benchmarks

Appendices


General management

Executive Chairman

Responsible for the running of the board, the Executive Chairman may also be the most senior full-time executive.

Group CEO

The most senior full-time executive in the organisation (with the exception of instances where a full-time Executive Chairman sits on the board), accountable for all of the organisation’s activities and responsible for overall strategy and profitability.

Division CEO (Product)

Responsible for the operation, strategy and profitability for a division or profit centre.

Division CEO (Region)

Responsible for the operation, strategy and profitability for a specific geographical area or profit centre.

Regional manager

Manages operations in a specific region or country within a group area or division.

Operations

Oversees the corporate functions of the organisation.

Sub-functions

Shared services

Central function responsible for coordinating the group’s corporate functions such as operations, IT and HR.

Please note this function is broader than an HR shared service centre.

Programme/project

Oversees all aspects of a specific programme(s) or project(s), ensuring effective planning and delivery within budget and schedule.

Finance

Responsible for all financial matters including strategy, taxation and treasury functions.

Sub-functions

Financial control

Runs the organisation's financial systems, overseeing various functional heads and functions and developing the organisation’s financial policy.

Accounting

Develops and maintains financial controls and accounting processes and systems. Responsible for various reporting requirements.

Reporting

Prepares interim reports, annual reports and group accounts, internal management accounts and consolidated results for the board.

Tax

Implements the organisation's tax strategy, ensuring compliance tax law and regulation, and evaluating tax effectiveness. Responsible for various reporting requirements.

Treasury

Ensures effective financial and risk management procedures are established, and manages funds, cashflow, borrowing and FX. Negotiates with banks and other financial institutions.

Internal audit

Provides assurance on financial controls for managing business risk, developing audit programmes and ensuring compliance with legal and procedural requirements.

Financial planning and analysis

Measures financial performance against KPIs and strategic objectives, developing forecasting models and contributing to financial strategies.

Investment

Designs and implements key investment policies, asset management, investment analysis, and oversees portfolio allocation levels.

Mergers and acquisitions

Manages the company's strategy for acquisitions and disposals, assessing the profitability and risk of potential investments, and supporting business integration.

Asset management

Manages and implements policies and processes associated with the company's owned, leased or sub-leased assets.

Appendix II: Job descriptions

Average FTSE 100

Foreword Individual

benchmarks

Appendices


Finance (continued)

Economics

Responsible for the development and implementation of key economic policies. Manages high-impact projects, provides advice, analysis and development within the business.

Underwriting

Assesses the risks and liabilities of accounts in order to minimise losses for the company and create profitability.

Actuarial

Runs statistical and financial modelling to assess and forecast business risk based on a number of scenarios.

Operations

Responsible for the operational management of the finance function.

Risk

Develops and implements risk strategy and controls to minimise potential losses.

Programme/project


Strategy

Develops the organisation’s overall business strategy.

Sub-functions

Business planning

Analyses business performance, providing information to support the company's strategic decisions.

Business transformation

Develops programmes for organisational change, implementing business processes, behavioural models and structural transformation to support strategic objectives.

Programme/project


Sales and marketing

Generates business growth through sales and marketing, identifying new products and services and growing existing revenue streams.

Sub-functions

Sales

Creates a sales strategy for the organisation, product range or designated market to achieve revenue and profit growth, winning new clients and increasing business from existing clients.

Marketing

Develops marketing strategies by studying economic indicators, tracking changes in supply and demand, identifying customers and their current and future needs and dealing with all marketing, advertising and promotional activities.

Brand management

Develops and implements sales and marketing strategies, including advertising and promotion, to deliver brand value and growth.

Business development

Responsible for planning and establishing new business opportunities and increasing the company's portfolio of clients/accounts.

Customer service

Develops customer service policies to ensure consumer requirements are met and, Responsible for large operations such as contact centres.

Customer insight

Analyses consumer trends to provide market intelligence, supporting the organisation’s sales strategy and growth.

E-commerce

Responsible for online, and often multichannel, platforms. Develops e-commerce strategies to increase sales and liaises with the IT department and other key stakeholders to ensure platforms operate effectively.

Operations

Responsible for the operational management of the sales function.

Average FTSE 100

Foreword Individual

benchmarks

Appendices


Communications/corporate affairs

Manages all communication streams for the organisation, including PR, stakeholder management and internal communications.

Sub-functions

External communications and PR

Acts as a line of communication to the company, managing public profile and media activities.

Internal communications

Responsible for internal communication channels within the organisation, promoting employee engagement by ensuring employees remain informed of business activities and strategy.

Investor relations

Builds and maintains relationships and acts as a point of contact for clients, investors and government/regulatory stakeholders.

Digital communications

Develops the organisation’s digital communication strategy, such as use of social media.

Legal and secretariat

Provides legal counsel to the company, ensuring compliance with all relevant statutory and regulatory requirements.

Sub-functions

Legal

Manages the provision of legal advice to the organisation, including specialised areas such as corporate, commercial and intellectual property law.

Company secretariat

Ensures compliance in relation to financial and legal practices and corporate governance, acting as a point of contact between the board and company’s key stakeholders.

Risk

Develops and implements policies relating to risk strategy and corporate governance.

Compliance

Implements an effective compliance strategy to ensure that the business is aligned with current legislation, regulation and governance best practice.

HR

Manages the overall provision of HR services, policies and programmes, including recruitment, reward and development.

Sub-functions

Shared services

Central function coordinating the activities of the HR sub-functions.

Reward

Develops and implements reward programmes to attract, retain and incentivise employees, ensuring packages are competitive and aligned to business strategy.

Learning and development

Designs and delivers training programmes to develop employees, and identify and retain key talent.

Employee relations

Ensures employee issues are dealt with effectively with minimal disruption to the organisation, managing relationships with trade unions and other bodies.

Recruitment/talent

Drives the organisation’s recruitment policy, developing strategies to ensure the company is competitive and attracting the highest talent.

Transformation

Develops organisational change programmes relating to HR to promote employee better engagement and support company strategy.

Systems

Responsible for ensuring employee related systems, such as payroll, are running effectively, developing processes and contributing to HR strategy.

Pensions

Ensures employee pension schemes operate effectively, defining the strategic development of current and new schemes and overseeing the day to day management of pension funds.

Operations

Responsible for the operational management of the HR function.

Average FTSE 100

Foreword Individual

benchmarks

Appendices


IT

Responsible for developing and implementing IT solutions to support business growth, while supporting business operations.

Sub-functions

Infrastructure

Manages the installation and maintenance of all level and wide area networks, maintaining network connectivity and performance by repairing existing communications issues and troubleshooting problems.

Systems

Manages programs, capturing analysis, ensuring back- up systems operate effectively and contributing to organisational policy regarding quality standards and strategic planning.

Projects

Designs processes and procedures, controlling quality, managing risk, scheduling projects and performing presentations to all levels of users.

Architecture

Ensures applications and the integration of new products are compatible with business systems, plans and develops new products and services, and undertakes system modifications.

Security

Develops and implements information security protocols, assessing risk and potential vulnerabilities.

Operations

Responsible for the operational management of the IT function.

Manufacturing and operations

Responsible for leading the company’s day-to-day operations, including manufacturing, distribution and supply chain, and back-office functions such as facilities management.

Sub-functions

Logistics and distribution

Optimises the logistical management of products at all stages, from raw material to finished product, and ensures the efficient flow of merchandise from suppliers to customers, overseeing inventory control, warehousing and distribution.

Supply chain

Responsible for estimating and planning demand, controlling stock and identifying logistical flaws. Manages supply and distribution, and develops processes to improve logistic and supply chain performance.

Procurement

Plans, directs and co-ordinates the activities of buyers, purchasing officers and related workers involved in procuring materials, products and services.

Quality assurance

Ensures the organisation meets with internal and external quality standards and complies with all relevant regulations.

Programme/project


Property/facilities

Oversees overall operation and administration of the internal property portfolio.

Plant/site management

Oversees the operations of a plant/factory or group site

Health, safety and environment

Ensures the organisation's health, safety and environmental policies, procedures and risk controls are effectively implemented and compliant with law and regulation.

CSR and sustainability

Responsible for developing and implementing the organisation’s CSR strategy, promoting sustainable growth and advising on environmental matters.

Average FTSE 100

Foreword Individual

benchmarks

Appendices


Technical

Responsible for the creation and regulation of the organisation’s technical products and services.

Sub-functions

Research and development

Manages R&D programmes to meet organisational needs, generating new products and services.

Engineering

Develops and implements engineering strategies and solutions, monitoring and improving the technical performance of installations and managing maintenance programmes.

Programme/project


Exploration

Responsible for the planning, management and execution of exploration campaigns, and ensuring activities are compliant with regulations.

Geology/Geophysics

Informs decisions by identifying potential exploration areas through research and analysis.

Retail

Oversees all activities linked to the organisation or brand's retail distribution, maximising the sales and profitability at a group level or for a specific area/group of stores.

Sub-functions

Buying/purchasing

Ensures that appropriate products are sourced and distributed within the required timescales, planning and selecting the range, type and quantity of products according to customer demand, trends, store policy and budget.

Merchandising

Develops a merchandising strategy in line with business objectives to maximise sales, working closely with the buying teams to forecast trends, plan stock levels and monitor performance.

Category

Responsible for a specific group or line of products, supporting sales growth by driving pricing, marketing and promotions.

Store operations

Oversees all corporate and retail services for flagship and/or a group of stores.

Average FTSE 100

Foreword Individual

benchmarks

Appendices


To find out more about this survey, or to discuss any of the findings please contact our survey team, or your usual PwC contact.

Reward research team Reward Partners

Marcus Peaker

Partner

Email: [email protected]

Tel: 020 7804 0249

Alastair Woods

Director


Tel: 020 7804 8102

Steve Tatton

Senior Manager


Tel: 0207 804 5688

Reward data team mailbox


Tom Gosling

Reward practice leader


Tel: 020 7212 3973

Fiona Camenzuli


Tel: 020 7804 4175

Carol Dempsey


Tel: 020 7212 4641

Dean Farthing


Tel: 020 7212 5323

Isabel McGarvie


Tel: 014 1355 4060

Phillippa O’Connor


Tel: 020 7213 4589

Julian Sansum


Tel: 020 7212 1652

Jon Terry


Tel: 020 7212 4370

Paul Wolstenholme


Tel: 020 7212 6225

Tim Wright


Tel: 020 7212 4427

Appendix III: Contacts

This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. © 2015 PricewaterhouseCoopers LLP. All rights reserved. In this document, 'PwC' refers to the UK member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

150910-153012-NC-OS

http://www.pwc.com/structure

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