• Value creation
• Connectivity of information

Key observations:

Halfords’ 2017 Remuneration Policy Report shows connectivity between value creation (a fundamental concept of the <IR> Framework) and remuneration (a key aspect of the ‘Governance’ content element [4B]). The report initially summarises the Executive Remuneration policy itself and key changes that have been made to it. Both discussions highlight that the policy has been designed to support and link to Halfords’ strategy. This shows alignment with 4.9 of the <IR> Framework which calls for integrated reports to provide insight into “how remuneration and incentives link to value creation in the short, medium and long-term”.

More granular detail on the relationships between remuneration and strategy is provided in subsequent tables which discuss each element of the policy in terms of its ‘purpose and link to strategy’, ‘operation’, ‘maximum opportunity’ and the performance measures used in remuneration calculation. Indicating the latter satisfies 3B of the <IR> Framework which calls for integrated reports to show the interrelatedness between factors that impact value creation.