Reward
As announced a year ago, we took a decision to defer the April pay review until October 2009, when a full review was undertaken. As a result, salaries increased in the few market sectors experiencing upward pay movement but remained broadly flat for much of the Group.
The April 2010 pay review was conducted within the context of strong business performance in some of our businesses, but continuing challenging market conditions in others. Overall pay levels rose by 2% across the Group, with increases appropriately targeted to respond to significant pay pressure in some areas without affecting competitiveness in those sectors of the market where salaries at best remain flat. As a result, 55% of staff received an increase.
The executive bonus scheme, which covers approximately 850 senior staff, provides the opportunity to increase pay to the upper quartile for the sector by meeting demanding financial and personal targets. In addition, many senior staff also receive an annual share award, providing an incentive to deliver sustained long-term performance.
A discretionary bonus scheme covers the wider Atkins population and pays a bonus to approximately 30% of staff in each year, recognising individual contribution and performance.
We continue to work closely with the Trustees of the Group’s defined benefit pension schemes to ensure that the schemes are appropriately funded and that liabilities are managed effectively. A change was implemented for the members of the Atkins section of the Rail Pension Scheme which has allowed members who wish to do so to choose a lower-cost option in exchange for a cap on final pensionable salary.
We have sought to strengthen further the Board of Trustees for the Atkins Pension Plan, the largest scheme within the Group, to increase its investment expertise, and we have already commenced a dialogue with the Board regarding the 2010 triennial valuation.
We were delighted to achieve the National Association of Pension Funds’ quality mark for the defined contribution section of the Atkins Pension Plan. This confirms that the Plan is considered competitive with respect to Company contribution levels and is managed and administered to a high standard of governance.