The Group’s strategy is focused on increasing shareholder value, which is measured using total shareholder return (TSR) compared to the FTSE 100 Index and also to the Fast Moving Consumer Goods (FMCG) peer group. The target is to show an above average performance in the long term, compared to the 2 comparator groups, based on a 3 year average.
TSR performance combines both the share price and dividend performance of the Company during the performance period, as set against the 2 comparator groups. The FMCG comparator group is reviewed annually to ensure that it remains both relevant and representative.
TSR is measured according to the return index calculated by Datastream, on the basis of all companies’ dividends being reinvested in their shares. The return is the percentage increase in each company’s index over a 3 year period. On the TSR measure, the Company ranked seventh out of the FTSE 100 group of companies while it ranked second in the peer group of international FMCG companies. The Group has achieved a top quartile performance in both of these categories since 1999. See the Remuneration report for more information.