Human Resources Review
Our people

Reward

We continue to monitor our remuneration practices to ensure that we reward people competitively in each of the markets and regions in which we operate. During the year, we saw a significant decline in wage inflation and took a decision in January to defer the annual Group-wide salary review from April to October 2009. This should allow us to take considered decisions regarding pay levels against a more stable and predictable outlook than would otherwise have been the case.

In the context of the decision to defer the annual pay review, our executive directors and chairman have waived 10% of their monthly salary payments from 1 April 2009. In addition, in response to local market conditions, a 10% pay reduction has been implemented for staff in the Middle East and Ireland, taking account of significant pay deflation in these markets.

We reviewed the operation of our bonus and incentive arrangements, which we believe continue to operate well and effectively, against current best practice. Our executive bonus scheme now covers more than 800 people. In addition, approximately 30% of our staff will benefit from a discretionary bonus award to recognise individual contribution and performance.

We have made additional progress with the restructuring of the Group’s defined benefit pension arrangements with a further reduction in the number of members accruing benefits in the Atkins pension plan in the UK and the closure to future accrual of the McCarthy plan in Ireland.

Finally, we have commenced consultation with approximately 400 staff in the Atkins section of the Railways Pension Scheme to provide a voluntary lower-cost option as an alternative to significantly increased member and employer contributions.

These actions together with previously announced increases to employer contributions have significantly reduced the risks associated with our defined benefit liabilities.