The Remuneration Committee, as constituted by the Board, is responsible
for the determination of the remuneration policy for the Development Securities’
Executive Directors and for ensuring that the remuneration of senior managers
and other employees is consistent with the Company’s remuneration
philosophy. The Committee, which met five times during the year, comprises
M S Soames as Chairman and V M Mitchell. W Grant retired as Chairman on
11th May 2006 following his resignation as a Director of the Company. All
members of the Committee are considered independent Non-executive Directors
of the Company. No member has any personal financial interest in the matters
to be decided.
The Committee’s principal role is to determine the total remuneration
of the Executive Directors and to ensure that senior management remuneration
is consistent with corporate policy. In addition to the support of the Executive
Director, M H Marx and the Company Secretary, S A Lanes, the Committee sought
professional advice from external consultants Towers Perrin and legal support
from Linklaters. Towers Perrin, who currently do no other work for the Group,
were appointed by the Remuneration Committee. Linklaters are also the Group’s
principal legal advisor.
During the previous year, the Committee carried out a thorough review of
all elements of the Group's remuneration package, assisted by the Committee’s
professional advisors, with the Development Securities PLC Performance Share
Plan 2006 and Investment Growth Plan 2006 approved by shareholders at the
Annual General Meeting held on 11th May 2006. The emphasis by the Remuneration
Committee in considering remuneration policy is to provide a balanced remuneration
package for both Executive Directors and senior managers, requiring attention
to both short- and long-term performance.
This report sets out the Committee’s existing policy and disclosures
on Executive Directors’ and senior managers’ pay and also outlines
the several incentive plans and option schemes in operation by the Company.
The Company has complied throughout the period with the FRC Combined Code
on Corporate Governance June 2006 in relation to Directors’ remuneration.
In addition, the report has been prepared in accordance with the Directors’
Remuneration Report Regulations 2002. As part of the Regulation requirements,
sections 2 and 3 of this report have been audited.
