Report on Directors’ Remuneration  | continued (i) Basic salary and benefits (ii) Performance-related incentive plan  (iii) Chief Executive long-term incentive plan (LTIP)  58 CRH 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.  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.  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  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.  Executive Director % Increase 2013/12  % Increase  2012/11 M. Carton, Finance Director 3.6% 0.0% M. Lee, Chief Executive 2.6% 0.0% A. Manifold, Chief Operating Officer 3.1% 0.0% M. Towe, Chief Executive Oldcastle, Inc.* 3.8% 4.0% *  in US Dollars Outcome of Executive Director Salary Review Annual Incentive Plan Components: Approx. weighting (i)  Personal, safety and strategic goals } 20% individual The performance-related  incentive plan is totally  based on achieving clearly  defined and stretch annual  targets and strategic goals (ii)   Profit and EPS growth targets (iii) Cash flow generation targets (iv) Return on net assets targets } 80% profits,  cashflow and returns Target Performance: Europe-based executive Directors  – 80% of basic salary US-based executive Directors  – 90% of basic salary A maximum payout of 1.5  times these levels (i.e.  120%/135%) is payable for  a level of performance well  in excess of target 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 Executive Director Salary % Payout Metrics M. Carton, Finance Director 33.3% Group cashflow; achievement of personal and strategic goals M. Lee, Chief Executive 33.3% Group cashflow; achievement of personal and strategic goals A. Manifold, Chief Operating Officer 33.3% Group cashflow; achievement of personal and strategic goals M. Towe, Chief Executive Oldcastle, Inc. 70% Americas cashflow, profit and return on net assets;  achievement of personal and strategic goals