These ranges have been capped at the median of the comparator group which comprises directors and senior management of 10 UK-based international companies with similar profiles to Cable and Wireless plc. The ranges are reviewed regularly but have been frozen since April 1993. Any movement within an individual's range will reflect a combination of the achievement of personal objectives and overall contribution to long term performance of the Group. Dr N Brian Smith's fees for his role as Chairman of the Company were set at the time of his reappointment. There is no payment without real growth.
Bonus payments are discretionary and are paid in respect of each year's service.
Bonus payments are not pensionable. The Directors' pension scheme, independent of other Group pension schemes, is a defined benefit scheme whereby retirement benefits based on the Executive Directors' final base salary and length of service are provided through separate trustee administered schemes. The Company pays contributions into the scheme on behalf of Executive Directors based on the recommendations of the independent actuary who carries out a valuation of the scheme every three years, or at such shorter intervals as may from time to time be agreed. None of the existing Non-executive Directors are in the Directors' pension scheme. The Company is proposing, subject to shareholder approval, to introduce a Long Term Incentive Plan which will replace the longer term element of the annual bonus described above.