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## Report on Directors’ Remuneration | continued 

## (i) Basic salary and benefits 

The basic salaries of executive Directors are reviewed annually. The factors taken into account in the annual review are set out in the table on page 57. 

Basic salary for Irish-based executives has remained unchanged since 2009 (with the exception of the Finance Director who was appointed in 2010). The Remuneration Committee reviewed salary levels in early-2013 and determined that salary increases for executive Directors in the range of 2.6% to 3.8% were appropriate. The increases, which are effective from 1 January 2013, are in line with general trends in CRH operations around the world. The salary increases are set out in the upper table. 

As reported to shareholders in the 2011 Report on Directors’ Remuneration, Mark Towe received an increase in US Dollars in 2012, which was broadly in line with trends in senior executive remuneration in the US. 

Employment-related benefits include the use of company cars, medical/life assurance and relocation costs, where necessary. 

No fees are payable to executive Directors. 

## (ii) Performance-related incentive plan 

The structure of CRH’s annual incentive scheme is set out in the middle table. 

Performance-related rewards, based on measured targets, are a key component of CRH’s remuneration structure. The Annual incentive plan is designed to reward the creation of shareholder value through operational excellence, organic and acquisitive growth. 

The bonus levels for 2012 reflect for Maeve Carton, Myles Lee and Albert Manifold the achievement of individual strategic and personal goals and the continuing good performance in terms of Group cashflow generation, an important metric of the annual incentive plan since 2009. Mark Towe’s bonus level similarly reflects the achievement of individual and strategic goals and a good cashflow generation performance, and also resulted from the improvement in the performance of the Americas Divisions, which led to a payout under the profit and return on net assets metrics. As the 2012 bonus levels were less than Target Performance, the payment is entirely in cash. The bonus outcome for 2012 is summarised in the lower table. 

## (iii) Chief Executive long-term incentive plan (LTIP) 

In addition to the annual performance incentive plan, the Chief Executive, Myles Lee, has a special long-term incentive plan (LTIP) incorporating targets set for the five-year period 2009-2013. The plan, the structure of which is the same as for LTIPs put in place for previous CRH chief executives, incorporates 

## Outcome of Executive Director Salary Review 

<img src='content_image/186360.jpg'>

## Annual Incentive Plan 

<img src='content_image/186363.jpg'>

## Deferral Element: 

– Any portion of the annual bonus that exceeds Target Performance is deferred (i.e. up to 1/3 of the annual bonus) 

– The deferred bonus is payable in CRH shares which are held in trust for 3 years, after which executives are entitled to beneficial ownership of the shares 

– Depending on the circumstances, leavers may forfeit deferred shares 

## 2012 Bonus Levels 

<img src='content_image/186369.jpg'>

challenging goals in respect of Total Shareholder Return by comparison with a peer group, growth in earnings per share and the strategic development of the Group, with a total maximum earnings potential of 40% of aggregate basic salary. The purpose of the LTIP is to incentivise superior performance by the 

Group over the long term and the successful execution of Group strategy. Any payments under the plan will be made in cash and will not be pensionable. While accruals are made on an annual basis, there is no commitment to any payment until after the end of the five-year period. 

