Mercer will undertake for the remuneration committee an
assessment of whether the performance condition applying to the
vesting of any option has been met following the announcement
of the results for the financial year. This assessment will be
reviewed by the company’s auditors.
For the purpose of the assessment: the adjusted EPS results
as reported in US$ will be converted into sterling using the
average exchange rate for the previous 12 months; the resulting
value will be compared with the adjusted EPS figure for the
financial years ended three, four or five years previously as
appropriate, also converted into sterling from US$ at the average
exchange rates relevant to those financial years to establish the
percentage growth over each period; and then the outturn will
be compared with the change in UK RPI, plus the applicable
minimum growth factor, over the relevant period. This method has
been chosen to ensure that executives are rewarded for achieving
real growth in earnings when tested against UK inflation, where
the company has its primary listing.
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