03 July 2017
Mr Richard Solomons - remuneration arrangements on departure
The following information is provided in accordance with section 430(2B) of the Companies Act 2006.
As previously announced, Mr Solomons stepped down from the role of Chief Executive Officer, InterContinental Hotels Group® PLC, and from the Board on 30 June 2017, and will retire from the company on 30 August 2017.
All payments made to Mr Solomons on retirement will be consistent with the approved Directors’ Remuneration Policy (“Policy”).
Mr Solomons will be paid salary and benefits until the date he ceases to be an employee of the company. The company has agreed with the relevant providers that healthcare cover will continue to 31 December 2017.
On retirement, Mr Solomons will be treated as a good leaver for the purposes of the Annual Performance Plan (“APP”) and Long Term Incentive Plan (“LTIP”) as set out in the Policy.
Mr Solomons will remain eligible for APP awards for the period of employment until the date he ceases to be an employee of the company. Any payment under the 2017 APP award will be pro-rated to the date Mr Solomons ceases employment. There will be no accelerated payment of the 2017 APP. The award will be subject to the normal performance conditions and any payment will be made 50% in cash and 50% in shares deferred for three years from grant.
Mr Solomons’ unvested APP deferred shares will vest on the usual vesting dates. Malus provisions will continue to apply for a period of three years after the grant of the APP share awards.
Mr Solomons will not be eligible for an LTIP grant in 2017. All outstanding LTIP awards will vest in line with the terms of the plan rules on the normal vesting date and only to the extent the performance conditions are fulfilled, and will be pro-rated for the time up to the date Mr Solomons ceases employment. LTIP awards will remain subject to malus provisions, which apply to all award holders under the terms of the plan until the end of the performance period. Clawback provisions will continue to apply for a period of three years after vesting of the awards.
The table below sets out the estimated value of outstanding APP deferred share awards and LTIP awards.
1. For LTIP awards, this is the original award. Since grant, the 2014, 2015 and 2016 APP deferred shares awards have been subject to consolidation in connection with special dividends paid to date; the number of shares following such historic consolidations is shown.
2. IHG plc closing share price on 29 June 2017
3. Outstanding LTIP awards remain subject to performance conditions; the estimated value of the LTIP awards assumes 50% of maximum vesting for all awards, and is pro-rated up to date employment ceases (30 August 2017)
4. For LTIP, vesting date is the day after the announcement of the preliminary results for the previous financial year
5. For the purposes of this disclosure, the 2017 APP is assumed to pay out at target, pro-rated for the period of employment in the year of departure, and based on a salary of £836,150
6. Expected date of grant/vesting date
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.
Visit www.ihg.com for hotel information and reservations and www.ihgrewardsclub.com for more on IHG Rewards Club. For our latest news, visit: www.ihgplc.com/media and follow us on social media at: www.twitter.com/ihg, www.facebook.com/ihg and www.youtube.com/ihgplc.