The policy in determining service contracts is to take account of market practice, and to ensure that provisions in relation to termination notice periods or payments are not excessive. The following table summarises the key provisions of the executive directors’ service contracts not referred to elsewhere in this report.
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Provision |
Javed Ahmed – Chief Executive |
Tim Lodge – Chief Financial Officer |
Notice period |
6 months |
6 months |
Termination payment |
The Company has the right, but not the obligation, to pay in lieu of notice the base salary and pension allowance that would have been payable during the notice period. |
The Company has the right, but not the obligation, to pay in lieu of notice the salary, pension and other contractual benefits arising during the notice period. The Company has the contractual right to phase the payments and to reduce them if the executive mitigates his loss. |
Expenses |
Reimbursement of expenses reasonably incurred in accordance with his duties. |
Reimbursement of expenses reasonably incurred in accordance with his duties. |
Holiday entitlement |
30 days |
30 days |
Sick pay |
Full basic salary for the first 26 consecutive weeks and thereafter at a rate reduced by up to half at the Committee’s discretion subject to termination by the Company. |
Full basic salary for the first 26 consecutive weeks and thereafter at a rate reduced by up to a half at the Committee’s discretion subject to termination by the Company. |
Restrictive covenants |
For the period of 12 months (less any garden leave period) following termination of employment. |
For the period of 12 months (less any garden leave period) following termination of employment. |
Contract commencement date |
1 October 2009 |
4 December 2008 |