Reward programmes

We operate competitive reward programmes to reinforce and support our overall colleague engagement strategy. In addition, variable compensation in the form of annual and longer term incentives helps drive the high performance that our results demonstrate.

This year we introduced an aligned incentive programme for our most senior leaders throughout the Group. The programme rewards financial performance of the business in which the individual works. In 2010, the programme will also take into account how that performance was achieved by mapping the individual leader’s actions to our winning behaviours. To aid retention of talent and ensure focus on longer term shareholder value creation, at least one-quarter of the annual bonus achieved is deferred into TUI Travel PLC shares for three years or more.

The majority of our colleagues participate in local benefit programmes including retirement benefit schemes and generous holiday discounts. In the UK, colleagues are able to purchase shares in the Group through our Share Incentive Plan that provides one free share for every four shares purchased.