 International Power operates in an increasingly complex business environment. We place a high priority on the recruitment, retention and training of staff at all levels, whether employed by us directly or by any of our subsidiaries or associates. In particular, we operate an incentive-weighted compensation scheme which we believe rewards and develops staff on the following bases: - Achievement of tangible personal objectives: annual targets are set for all personnel, calibrated at levels designed to ensure that individuals are able to contribute to the attainment of these objectives.
- Professional and educational advancement: we promote and facilitate mid-career training, internal and external seminars, personal development plans and other educational programmes. In addition, we encourage our staff to participate actively in their personal development and in relevant professional organisations.
- Leadership: we expect our staff to exercise leadership in their dealings with colleagues, partners, customers and other contract parties.
 This all relies on a foundation of personal integrity. We endeavour to ensure that all of our staff conduct themselves, internally and externally, in a manner appropriate to the correct projection of our corporate image. Clear communication links with all staff are critical to enhance business and commercial awareness throughout our business, and this was a key element of the integration process following our July 2001 acquisition of Rugeley power station and its 130 staff. Corporate publications, the International Power website and intranet, employee awareness briefings from executive management and team briefings are all used to promote communications and an understanding of the development and application of policies and strategy. We use the latest technology to aid rapid communication with all staff around the world, as well as holding bi-annual Global Employee Forums.
The Group is committed to equal opportunities, both from a sense of social responsibility and also because it makes sound business sense to benefit from the wide-ranging knowledge and experience of individuals in all sectors of society. This commitment to equal opportunities means that decisions to appoint, reward, train, develop and promote are taken purely on the basis of skills and abilities, as matched against the requirements of the job. The Group values its reputation as a caring employer and seeks to attract and retain high calibre employees. Opportunities for training are given a high priority to ensure that all individuals can contribute to their own career development. This approach extends itself to the fair treatment of people with disabilities in relation to their recruitment, training and development.
 International Power has a suite of share-based plans under which employees may acquire Ordinary Shares in the Company. These plans form an integral part of International Power's strategy to: provide appropriate reward and retention strategies for employees; align employee and shareholder interests through incentive targets based on clear operational and financial metrics; ensure our ability to recruit, motivate and retain staff. We seek to enable all our employees to participate in these programmes, where appropriate. This suite of share-based plans includes a savings-related share option scheme open to staff in the UK. Over 85% of eligible staff currently participate in the scheme, saving between £10 and £250 per month, with the option to purchase shares at a discount at the end of a chosen three or five-year savings period. The Company also operates, for UK staff, the International Power Approved and Unapproved Executive Share Option Schemes (ESOS). The Company is developing a UK Inland Revenue Approved Share Incentive Plan (SIP), a Global Employee Share Ownership Plan, and a Longer-Term Incentive Plan for Executive Directors and a small number of senior managers. Effective from demerger, a one-off Demerger Plan was established to award, in trust, International Power Ordinary Shares to UK staff. A Restricted Share Plan was also established to enable International Power's Chief Executive Officer to be remunerated in International Power Ordinary Shares. The Chief Executive Officer does not receive an annual salary or annual bonus. A one-off Long-Term Incentive Plan is in place for Executive Directors and a small number of senior managers. 
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