Report on Directors’ Remuneration  | continued Remuneration Policy AGM Votes on Report on Directors’ Remuneration Remuneration Consultants Risk Policies and Systems  Executive Directors’ Remuneration The  Remuneration Committee’s  approach to remunera- tion is to make sure that CRH’s pay structures are fair,  responsible and competitive, in order that CRH can  attract and retain staff of the calibre necessary for it to  compete in all of its markets. When setting remuneration  policy for executive Directors, the  Remuneration  Committee  review and have regard to the remuneration  trends across the Group.  The Group’s remuneration structures are designed to  drive performance and link rewards to responsibility and  the individual contribution of executives. It is policy to  grant participation in the Group’s performance-related  plans to key management to encourage identification with  shareholders’ interests and to create a community of  interest among different regions and nationalities.  The purpose of this report is to: The report contains details of awards made to executive  Directors under the Group’s share incentive plans and the  level of vesting where relevant. Total remuneration paid to  each Director in 2012, including the value of vested share  awards, is set out on page 61. The policy on Directors’ remuneration, which is derived from the overall Group policy, is designed to:  The typical elements of the remuneration package for  executive Directors are set out in the table opposite.  Each component is also outlined in detail on pages 58  to 60. The Chairman of the  Remuneration Committee  meets with  the  Audit Committee  annually to review the Group’s  remuneration structures and to ensure they are in line with  its risk policies and systems. The  Remuneration Committee  receives advice from  Mercer, a leading compensation and benefit consultant.  Mercer also provides actuarial advice to the Group and  they are actuaries and investment advisers to a number of  the Group’s pension schemes.  CRH actively engages with shareholders in relation to the  design of share plans and the  Remuneration Committee takes into account shareholder views generally regarding  remuneration levels. In addition, the  Remuneration  Committee  believes that shareholders are entitled to have  an annual “say on pay” and, accordingly, although not  required under Irish company law, the Report on Directors’  Remuneration has been presented to shareholders at  Annual General Meetings since 2010 for the purposes of  an advisory vote. The votes cast on the Report on  Directors’ Remuneration are set out in the table below. In setting remuneration levels, the  Remuneration  Committee  takes into consideration the remuneration  practices of other international companies of similar size  and scope and trends in executive remuneration generally  in each of the regions in which the Company operates.  The  Remuneration Committee  also takes into account the  EU Commission’s recommendations on remuneration in  listed companies.  The  Remuneration Committee  has adopted a policy  whereby executives are required to build-up (and maintain),  within five years of appointment, a minimum holding in  CRH shares which is equivalent to one times basic salary.  For existing executive Directors this level must be achieved  by 31 December 2015. The current shareholding levels as  a multiple of basic salary are shown on page 61. The  Remuneration Committee  has clawback arrange- ments in place. – reflect the risk policies of the Group. – set out the Group’s remuneration policy; – explain the purpose and link of each component of  remuneration to the Group’s strategy; – outline the factors taken into account in salary reviews; – provide details in relation to the structure of the Group’s  annual and share incentive plans.  – help attract and retain Directors of the highest calibre  who can bring their experience and independent views  to the policy, strategic decisions and governance of  CRH; – properly reward and motivate executive Directors to  perform in the long-term interest of the shareholders; – provide an appropriate blend of fixed and variable  remuneration and short and long-term incentives for  executive Directors; – complement CRH’s strategy of fostering entrepreneurship  in its regional companies by rewarding the creation of  shareholder value through organic and acquisitive growth; – reflect the spread of the Group’s operations so that  remuneration packages in each geographical area are  appropriate and competitive for that area; 2012 96.6% 3.4% 2011 96.4% 3.6% 2010 98.5% 1.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% For Against 56 CRH