Picton Property Income Limited Annual Report 2024

Governance

Financial Statements

Additional Information

Strategic Report

Revised Policy Overview

The below table summarises the revised Directors’ Remuneration Policy which will be put forward to shareholders at the 2024 AGM. The full Policy can be found on pages 116–119

The current Directors’ Remuneration Policy was approved by our shareholders at the Annual General Meeting in 2021. The Remuneration Committee has reviewed the continued appropriateness of the current Policy relative to our strategic priorities, governance requirements and evolving market practice. Input was sought from the Chief Executive and Finance Director whilst ensuring that conflicts of interest were suitably mitigated. An external perspective was provided by our independent advisers, Deloitte, and previous feedback from shareholders. Shareholder approval will be sought at the forthcoming Annual General Meeting for the updated Policy and key changes to the Policy are summarised below with the full Policy set out on pages 116–119. Subject to shareholder approval, the updated Policy will take effect immediately after the Annual General Meeting and will apply to the 2024/25 financial year.

Current Policy

Proposed changes and why

Base salaries are normally reviewed annually with changes effective on 1 April. This principally comprises private medical insurance, life assurance and permanent health insurance, and other benefits may be provided as appropriate. The Company has established defined contribution pension arrangements for all employees. A consistent rate of pension provision of 15% applies to all employees, including Executive Directors. The annual bonus is based on a range of targets (measured over a period of up to one year) set by the Committee. The maximum bonus permitted under the Policy will be 175% of base salary. At least 50% of the annual bonus will be paid in the Company’s shares and deferred for two years, although the Committee has discretion to amend the required level of deferral upwards or downwards. Awards under the LTIP are granted annually usually in the form of a conditional share award and will vest after three years subject to meeting performance conditions, determined by the Committee. The maximum value of awards is 150% of base salary. A further holding period of two years after vesting is normally applied. Annual fee for the Chair, and annual base fees for other Non-Executive Directors. Additional fees for those Directors chairing a Board Committee.

No changes

Base salary

No changes

Benefits

No changes

Pension contributions

No changes

Annual bonus

No changes

LTIP

Additional fees may also be paid for acting as Senior Independent Director or where there is a significant additional time commitment. The annual limit for Non-Executive Directors’ remuneration will increase to £425,000, subject to approval by shareholders at the Annual General Meeting.

Non- Executive Directors fees

Executive Directors are expected to build up and maintain a minimum shareholding equivalent to 200% of base salary, and remain compliant for a period of two years post-employment.

No changes

Shareholding guidelines

Picton Property Income Limited / Annual Report 2024

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