British American Tobacco’s remuneration policy continues to focus on the delivery of the Group’s strategy. In particular, in developing and maintaining a sustainable business by achieving growth, improving productivity, operating responsibly and building a winning organisation. The Remuneration Committee ensures that the relevant business objectives underpin all the performance-related bonus measures at both a corporate and individual level.
The Remuneration Committee adopted some time ago a simple and transparent approach for the remuneration packages of the senior executive team with the aim of providing full clarity for both shareholders and eligible participants about the required levels of performance. There is a real focus on business sustainability and the management of key risks which continues to be incorporated into the component parts of the remuneration policy which is detailed below.
The Remuneration Committee has decided to carry out a review in 2010 in connection with the International Executive Incentive Scheme (IEIS) and the Long-Term Incentive Plan (LTIP) to ensure that the total remuneration opportunity for the Executive Directors and senior management team is market competitive. This may lead to an approach to shareholders later in the year in the event that any changes are proposed.