Governance Remuneration Report continued
Awarded (%of maximum)
Awarded (%of salary)
Performance condition
Assessment
90% 7.9%
Occupancy has increased to 91%. Portfolio capital growth is ahead of the MSCI UK Property Index for the year. In 28 cases where support was provided, lease extensions, rent review settlements, and break removals were tied in with concessions. The Group’s loan to value ratio has reduced over the year. Dividend cover was over 130% for the year. New office at Stanford Building provides expansion space. Rent collection for the year was 93%, including amounts deferred. Rent concessions amounted to 4% of rent due over the year. Rental income was 97% of 2020 result. An action plan has been developed, based on the material issues identified in the previous year. Targets and objectives have been formulated, while the net zero carbon pathway will be determined in 2021.
Work creatively to maintain income/ value, increase occupancy Bonus weighting: 5%
80%
7%
Position the business for future opportunities Bonus weighting: 5% Maximise rent collection while minimising arrears and write-offs Bonus weighting: 5%
90% 7.9%
80%
7%
Set sustainability commitments and targets Bonus weighting: 5%
As discussed in the Committee Chair’s statement on pages 80 to 83, the Committee considered the formulaic bonus outcome in the context of the Group’s overall performance for the year and concluded that it was satisfied that the formulaic bonus outcome was a fair reflection of overall Group performance during the year. The Committee was also satisfied that the above performance was achieved within an acceptable risk profile. Subject to the estimated total return component noted above, the overall annual bonus outcome for the Executive Directors is, therefore, as follows: Financial metrics (out of maximum 60%) Corporate objectives (out of maximum 40%) Overall bonus % of maximum Bonus % of salary
Total bonus £
Michael Morris
46.2 33.5 79.7 139.4 348,600 46.2 33.5 79.7 139.4 237,000
Andrew Dewhirst
In accordance with the Directors’ Remuneration Policy the Committee has determined that 50% of the annual bonuses awarded to the Executive Directors should be deferred and payable in shares in two years’ time. Dividend equivalents will accrue on the shares and these will be paid in cash when the awards vest. Long-term Incentive Plan The LTIP awards granted on 8 June 2018 were subject to performance conditions for the three years ended 31 March 2021. The performance conditions and the actual performance for these were as follows:
Awarded (% of maximum)
Weighting (% of award)
Performance condition
Basis of calculation
Range
Actual
33.3% 100%
Median – (12.4)% Upper quartile – 4.9%
14.5% (above upper quartile) 6.7% (above upper quartile)
Total shareholder return versus comparator group
Less than median – 0% Equal to median – 25% Equal to upper quartile – 100% Less than median – 0% Equal to median – 25% Equal to upper quartile – 100% Less than 3% per annum – 0% Equal to 3% per annum – 25% Equal or greater than 9% per annum – 100%
33.3% 100%
Median – 3.1% Upper quartile – 4.6%
Total property return versus MSCI Index
3% – 4.58p 9% – 5.43p
3.67p
33.3% 0%
Growth in EPRA EPS
92
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