03 July 2017
Mr Keith Barr - remuneration arrangements on promotion to Chief Executive Officer
Mr Keith Barr was appointed to the Board as Chief Executive Officer (CEO) of InterContinental Hotels Group® PLC on 1 July 2017.
Mr Barr’s maximum incentive opportunity as a percentage of salary will be 200% under the Annual Performance Plan (“APP”) and 205% under the Long Term Incentive Plan (“LTIP”), as per IHG®’s approved Directors’ Remuneration Policy (“Policy”).
From appointment, Mr Barr’s salary will be £775,000, and benefits will be provided in line with the Policy. Company pension provision will remain at a similar level, comprised of a cash allowance in lieu of employer pension contributions of 25%. In line with the IHG’s recruitment policy, Mr Barr will be pro-rated into the 2017/19 LTIP based on his salary on appointment.
Prior to his appointment to the Board, Mr Barr was on international assignment from the US to the UK and therefore in receipt of certain expatriate allowances and benefits under the terms of IHG’s international assignment programme. These benefits included items such as housing costs, school fees and tax equalisation between the UK and US whilst on assignment.
The Board has agreed that from the date of appointment to the Board Mr Barr will be localised to a UK remuneration package and so will no longer be entitled to future assignment benefits or tax equalisation.
In order to cover the transitional and transactional costs of him and his family localising to the UK, Mr Barr will receive two lump sum localisation payments of £500,000 paid on appointment and £150,000 to be paid in 2018. Any outstanding APP and LTIP share awards granted to him whilst he was on assignment from the US and prior to his appointment to the Board will be subject to tax equalisation at the time of vesting in line with his legacy expatriate status at the time of grant. With the exception of these legacy awards, no further tax equalised payments or awards will be made to Mr Barr.
In line with Policy, Mr Barr’s shareholding requirement will be 300% of salary, and he is required to meet this within five years of appointment. He is expected to hold all shares earned (net of any share sales required to meet tax liabilities), until the shareholding requirement is achieved.
IHG® (InterContinental Hotels Group) [LON:IHG, NYSE:IHG (ADRs)] is a global organisation with a broad portfolio of hotel brands, including InterContinental® Hotels & Resorts, Kimpton® Hotels & Restaurants, Hotel Indigo®, EVEN® Hotels, HUALUXE® Hotels and Resorts, Crowne Plaza® Hotels & Resorts, Holiday Inn®, Holiday Inn Express®, Holiday Inn Club Vacations®, Holiday Inn Resort®, Staybridge Suites® and Candlewood Suites®.
IHG franchises, leases, manages or owns nearly 5,200 hotels and 770,000 guest rooms in almost 100 countries, with nearly 1,500 hotels in its development pipeline. IHG also manages IHG® Rewards Club, our global loyalty programme, which has more than 100 million enrolled members.
InterContinental Hotels Group PLC is the Group’s holding company and is incorporated in Great Britain and registered in England and Wales. More than 350,000 people work across IHG’s hotels and corporate offices globally.
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