Remuneration Committee’s time  allocation during 2012 20% 40% 28% 10% 2% Fee & salary reviews/annual bonus levels Share scheme operation/consultation/ awards/vesting levels Review of policy and remuneration trends Shareholder reporting/consultation Review of Committee’s performance In 2008, the total remuneration paid to the CRH  Chairman was €450,000. The then Chairman,  Kieran McGowan, elected to take a voluntary 10%  reduction in his fees to €405,000 in 2009. The  Remuneration Committee  acceded to this request  at the time and the reduced annual fee was paid  until Mr. McGowan retired from the Board in May  2012. Nicky Hartery’s fee level on his appointment  was the same as that of the out-going Chairman.  The  Remuneration Committee  re-considered the  level of the Chairman’s remuneration during 2012  and requested analysis and advice from its  remuneration consultant, Mercer. The  Remuneration Committee  considered the  outcome of Mercer’s review in the context of  CRH’s inclusion in the FTSE100 Index and  concluded that the 2008 fee level should be restored.  New regulations will come into force in the UK in  2013 in relation to remuneration, which will result  in revised disclosure requirements for UK  incorporated companies, a new requirement for a  binding vote on remuneration policy and an  advisory vote on the implementation of  remuneration policy at annual general meetings.  While CRH, as an Irish incorporated company, will  not be subject to the new requirements, the  Remuneration Committee  is committed to  ensuring that CRH’s remuneration structures and  procedures remain at the forefront of best practice  in this area and intends to implement the changes  to the extent that they are not inconsistent with  Irish company law. In the light of these changes, we have determined  that it is an opportune time to undertake a review  of CRH’s remuneration policy and, in particular,  the Group’s share incentive plan arrangements to  ensure they reflect current FTSE100 best practice  in terms of structure and adaptability. As the  outcome of the review is likely to result in either  proposed amendments to the existing long-term  share incentive plans or a new plan(s), a  shareholder consultation process will be  undertaken in the fourth quarter of 2013 in order  that proposals can be submitted to shareholders  for approval at the 2014 Annual General Meeting. The Committee has also agreed with the Board  that, going forward, the Chairman’s fees should  be reviewed every three years. The salary increases for executive Directors,  which for Irish-based executives have remained  unchanged since 2009¹, are in line with general  trends in CRH operations around the world. The  members of the  Remuneration Committee  believe  that the executive Directors’ salary increases are  appropriate and measured. Nicky Hartery and  Myles Lee were not present when their respective  remuneration was discussed.  We also determined the 2012 payment for each  executive Director under the annual incentive plan;  the structure of the plan is set out on page 58 of  this report. 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 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.  ¹ with the exception of the Finance Director who was  appointed in 2010 CRH 55 February 2013 Remuneration Committee Chairman Dan O’Connor  Key areas of focus for 2013/2014