Governance Remuneration Report continued
Annual statement Dear Shareholders Introduction On behalf of the Board, I am pleased to introduce the Remuneration Committee report for the year ended 31 March 2021. This report comprises three sections: ӱ This annual statement; ӱ Directors’ Remuneration Policy; and ӱ The Annual Report on Remuneration for the year ended 31 March 2021. The Committee met eight times during the year and set out below is a summary of its activity. Our Covid-19 response
Covid-19 impact Remuneration is considered against the performance of the Group in the both the short and longer-terms, and against the broader economic backdrop. The Covid-19 pandemic has provided a number of challenges over the last financial year and is likely to continue to do so. Picton has continued to performwell, and this is set out in the Strategic Report. The decisions that we have taken this year have been made against the backdrop of the economic conditions in the UK, market practice and investor feedback. We have not had to furlough any employees and have not taken any form of Government support. We have worked with our occupiers through this difficult period and found solutions that have helped them but also maintained value for all our stakeholders. At the start of the pandemic we took the difficult decision to reduce our dividend, but have subsequently increased it twice, so that it is now at 91% of the pre-pandemic level. Our share price, although still at a discount to net asset value, has recovered significantly fromwhere it was in the early stages of the pandemic. Given the Group’s performance and returns achieved the Committee considered it appropriate that the variable elements of remuneration pay out in accordance with their respective performance conditions having been met. The Committee determined that the outcomes did represent a fair reflection of the performance of the Group, and that no overriding adjustment was necessary.
NewRemuneration Policy and adjustments to Executive Directors’ remunerationmix and opportunity The current Directors’ Remuneration Policy was set in 2018 and approved by shareholders at the Annual General Meeting that year. It is now approaching the end of its three- year life, and we are putting forward a revised policy for approval by shareholders this year. Our existing policy is already compliant with most aspects of the 2018 Corporate Governance Code so there are relatively few changes in the proposed new policy. The principal change is the introduction of a post- employment shareholding guideline - further details are on page 88. In parallel with the introduction of the new policy, the Committee has reviewed the Executive Directors’ remuneration arrangements. The current arrangements were set when Picton transitioned from an investment company to a UK REIT in 2018, and new Executive Director roles were established. At that time the remuneration packages for the appointed individuals were not adjusted commensurate with their new roles. Our objective is to provide straightforward remuneration packages, justifiable to all stakeholders, which are designed so as to attract and retain outstanding talent and to fairly reward delivery of strategic priorities and enhanced shareholder value. We believe we are currently failing to meet aspects of this objective:
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