Section 430 (2B) of the Companies Act 2006 - Duncan Magrath

The following information is provided in accordance with Section 430 (2B) of the Companies Act 2006.

Duncan Magrath

It is confirmed that Mr Duncan Magrath, Chief Financial Officer of Balfour Beatty plc, will cease employment on Friday 8 May 2015.

The Board Remuneration Committee has determined that Mr Magrath will receive the following :-

a. An amount of £414,606 in lieu of unworked contractual notice period (since notice was served on 13 February 2015), comprising £336,494 for salary, £67,291 for pension allowance and £10,821 for car allowance.  Half of the payment in lieu of notice will be paid as a lump sum at cessation (£207,303) with the balance payable in monthly instalments and subject to mitigation until the expiry of the notice period. The monthly instalments will be reduced, on a pound for pound basis, should Mr Magrath secure alternative employment.

b. A payment of £25,154 in lieu of accrued but not taken holiday entitlement.

c. A payment in respect of the 2015 Annual Incentive Plan to the extent that the relevant performance targets for the year ending 31 December 2015 are achieved.  Any payment will be time pro-rated to reflect the period of time worked during the financial year and will be payable in cash at the normal March 2016 payment date.

In respect of outstanding share awards:- 

a. Performance Share Plan (PSP).  It was determined that unvested awards held under the PSP in respect of the 2013 awards (255,818 shares under award) and 2014 PSP awards (211,162 shares under award) should continue to vest at the normal vesting dates subject to performance conditions being satisfied and pro-rated for the proportion of the performance period served.  A further 80,155 shares (disclosed as ‘Special PSP’ in the 2015 Annual Report and Accounts), granted under the 2011 PSP, that have vested but are subject to a further Holding Period, will be released on termination.  No PSP award was made to Mr Magrath in 2015.

b. Deferred Bonus Plan (DBP).  Under the DBP, Mr Magrath deferred a total of 86,956 shares in respect of annual bonuses earned in the financial years ending 31 December 2012 and 31 December 2013.  These shares will be released on cessation at a value taken at the date of termination, being subject to normal tax and NI deductions. 

Full details of the above payments will be disclosed in the Directors’ Remuneration Report for the year ending 31 December 2015.