JUST GROUP PLC Annual Report and Accounts 2021
DIRECTORS’ REMUNERATION REPORT CONTINUED
Relative importance of spend on pay (unaudited) The table below illustrates the relative importance of spend on pay compared to shareholder dividends paid. Year ended 31 December 2021
Year ended 31 December 2020
% difference
101.5
Total personnel costs (£m)
107.5
-5.6%
–
Dividends paid (£m)
–
0%
Implementation of the remuneration policy in 2022 for Executive Directors (unaudited)
• David Richardson, CEO: £609,000 • Andy Parsons, CFO: £423,000
BASE SALARY
David Richardson and Andy Parsons’ salaries increased by 2% and 1.9% respectively from 1 April 2022, compared to 3.2% for the wider workforce.
£’000
Fee
NON-EXECUTIVE DIRECTORS FEES
Board Chair
200
Basic fee
60 10 20 15
Additional fee for Senior Independent Director
Additional fee for Committee Chair, Risk and Audit Committees Additional fee for Committee Chair, all other Committees
The Executive Directors will receive a benefits allowance of £20,000 for 2022 and a Company pension contribution or cash in lieu of 10% of salary. All employees are enrolled into the Company Group Life Assurance and Group Income Protection schemes. Maximum STIP opportunity remains unchanged at 150% of salary for Executive Directors. 50% of maximumwill pay out for on-target performance. The core bonus for 2022 will be determined by a balanced scorecard of performance against financial and strategic measures. The financial measures are:
BENEFITS AND PENSIONS SHORT TERM INCENTIVE PLAN (“STIP”)
• 40% based on Underlying Organic Capital Generation • 40% based on IFRS New Business Profit measures • 20% based on IFRS Operating Profit
The strategic measures, which can increase or decrease the bonus pool available (subject always to a maximum bonus pool of 100%) are: • ‘Customer’ (customer experience, upheld complaints and customer satisfaction) • ‘People’ (engagement and diversity - gender, ethnicity and race ) The core bonus is modified based on personal performance during the year. While not expected in the normal course, the Committee retains the flexibility to pay up to 20% of the maximum bonus opportunity based on personal performance only. The Committee has chosen not to disclose in advance details of the STIP performance targets for the forthcoming year as these include items which the Committee considers commercially sensitive. An explanation of bonus payouts and performance achieved will be provided in next year’s Annual Report on remuneration.
40% of any bonus earned will be deferred for three years into awards over shares under the Deferred Share Bonus Plan.
104
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