Summary
CRH plc's 2006 Form 10-K, filed on May 2, 2007, indicates a robust financial year with strong operational performance. The company emphasizes its commitment to internal controls over financial reporting, confirming their effectiveness as of December 31, 2006, as assessed by management and audited by Ernst & Young. A key focus for investors will be the company's significant acquisition activity throughout 2006, which added substantial assets and revenues, although the internal control assessment for these acquisitions was excluded. The report also details the company's remuneration policies, highlighting performance-based incentives and share plans designed to align executive and shareholder interests, including the introduction of a Performance Share Plan.
Key Highlights
- 1CRH plc confirmed the effectiveness of its internal control over financial reporting as of December 31, 2006, based on management's assessment and an unqualified opinion from its auditors, Ernst & Young.
- 2The company undertook significant acquisition activity in 2006, with acquisitions contributing €2,734.3 million to total assets and €1,907.0 million to revenues, though these were excluded from the internal control assessment.
- 3The company's remuneration policy for executive directors is heavily weighted towards performance-related incentives, including cash bonuses and deferred shares, aiming to reward the creation of shareholder value through growth.
- 4A Performance Share Plan was introduced and approved by shareholders in May 2006, tying awards to Total Shareholder Return (TSR) performance against peer groups and indices.
- 5Directors' remuneration includes basic salary, benefits, performance-related incentives, and participation in share option and performance share plans, with options and shareholdings detailed in the report.
- 6The company complies with US SEC code of ethics regulations through its global code of business conduct, promoting honest and ethical conduct and timely disclosure.