Share option schemes

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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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