Sir Ian Cheshire - 2 February 2015


Disclosure pursuant to s430(2B) of the Companies Act 2006

As announced previously, Sir Ian Cheshire stepped down as Group Chief Executive on 8th December 2014 and retired from the Board on 31 January 2015, leaving the Company on the same day. Details of the treatment of Sir Ian Cheshire’s remuneration following his departure are set out below:

  1. As a result of Sir Ian Cheshire’s departure he will receive a monthly payment of £127,350 for a maximum of just over seven months, this being the balance of his 12 month notice period not worked. The monthly payment is calculated as 15% of his base salary in line with the liquidated damages clause in his employment contract. The monthly payments are subject to mitigation. The maximum value of payments under the liquidated damages, in the event that mitigation is not applied, would be £931,970.
  2. Sir Ian Cheshire’s outstanding Long Term Incentive Awards will be treated in accordance with the rules of the applicable plans as follows:
    • Deferred bonus shares held under the KISS with a current value of £1,007,973 will vest on Sir Ian Cheshire’s leaving date (based on 294,041 shares at a share price of 342.80p, being the closing price of Kingfisher shares on 30 January 2015).
    • The second tranche of the award granted under the Performance Share Plan in 2011 will vest on the normal vesting date of 15 June 2015 and will be pro-rated to take into account the length of time Sir Ian Cheshire was employed over the vesting period. The estimated value of the shares taking into account pro-rata is £810,407 (based on 236,408 shares at a share price of 342.80p, being the closing price of Kingfisher shares on 30 January 2015).
  3. Sir Ian Cheshire will be eligible for a 2014/15 annual bonus as normal as he was employed for the full financial year. The personal weighting of the performance measures attaching to the annual bonus (20% of maximum) will be assessed based on the successful handover to his successor Veronique Laury for the period from 10 September 2014 to 31 January 2015.
  4. Sir Ian Cheshire was not invited to participate in the 2014/15 Long Term Incentive Award.
  5. A contribution of £7,000 towards legal fees will be made.