8-K

CRH PUBLIC LTD CO 8-K Report (Feb 25, 2014)

Filed February 25, 2014For Securities:CRH

Summary

This Form 6-K filing from CRH Public Ltd Co details the remuneration arrangements for its former Chief Executive, Myles Lee, following his retirement on December 31, 2013. The report clarifies that all salary and pension entitlements were settled prior to his retirement, and no payment for loss of office was made. Mr. Lee is eligible for an annual bonus for 2013, amounting to 35.6% of his base salary, with specific details to be provided in the 2013 Directors' Remuneration Report. Furthermore, the filing outlines the treatment of Mr. Lee's outstanding long-term incentive awards, including share options and performance share plans. Some awards will lapse, while others will be pro-rated based on performance up to his retirement date or measured over the original performance period. A significant cash-based long-term incentive plan (2009 CEO LTIP) is also addressed, with a determined payout of 33.7% of the maximum potential earnings. A consultancy agreement has also been established for Mr. Lee to provide services to the Group.

Key Highlights

  • 1Myles Lee retired as Chief Executive and from the Board on December 31, 2013.
  • 2No payment for loss of office was made to Mr. Lee.
  • 3Mr. Lee will receive an annual bonus for 2013 equivalent to 35.6% (€420,552) of his base salary.
  • 4Treatment of outstanding share incentive awards varies by scheme and grant date, with some awards lapsing, being pro-rated, or having extended exercise periods.
  • 5A cash-based long-term incentive plan (2009 CEO LTIP) will result in a payout of 33.7% (€778,127) of the maximum earnings potential.
  • 6Mr. Lee has entered into a consultancy agreement to provide services to the Group for up to 40 days per year at a rate of €2,500 per day.

Frequently Asked Questions

The annual bonus for 2013 is equivalent to 35.6% of his base salary, which amounts to €420,552. Further details will be provided in the 2013 Directors' Remuneration Report.

The treatment of long-term incentive awards differed by scheme. For instance, the 2011 award under the 2010 Share Option Scheme lapses in full, while the 2012 award is subject to pro-rating based on time. Some share options from the 2000 Share Option Scheme must be exercised within 12 months of retirement or their expiry date. The 2006 Performance Share Plan's 2011 award will vest based on performance to December 31, 2013 (49% of maximum), and the 2012 award will be pro-rated. Specific details for all awards are in the 2013 Directors' Remuneration Report.

Myles Lee has agreed to provide consultancy services to the Group for a maximum of 40 days per year, at a daily rate of €2,500. This agreement was initiated at the request of the current Chief Executive.

No, the filing explicitly states that no payment for loss of office was made to Mr. Lee.