Governance Remuneration Report continued
Implementation of Remuneration Policy in 2021/22
Change fromprior year
Executive Directors Base salaries Michael Morris (Chief Executive) – £287,500 Andrew Dewhirst (Finance Director) – £195,500
As set out in the Committee Chair’s statement base salaries for both of the Executive Directors will increase by 15% this year. The average increase for the rest of the workforce is 6.4%. No change. All employees receive company pension contributions at the rate of 15% of base salary or 15% salary supplement in lieu of company contributions. As set out in the Committee Chair’s statement the maximum bonus potential for Executive Directors will decrease from 175% of salary to 165% of salary this year and two financial metrics will be used this year rather than three. Awards to the Executive Directors have been restored this year back to a normal level.
Pension and benefits
15% salary supplement in lieu of pension plus standard other benefits
Annual bonus* Maximum bonus of 165% of salary with 50% of any bonus deferred in shares for two years
60% of bonus to be determined by corporate financial metrics of relative total property return (using the same performance target ranges as in 2020/21) with the remaining 40% determined by strategic and personal measures
LTIP *
Award of shares worth: ӱ Michael Morris (Chief Executive) 125% of salary ӱ Andrew Dewhirst (Finance Director) 110% of salary
Shares released after three-year performance and two-year holding period. Vesting of shares based equally on relative total shareholder return, relative total property return and growth in EPRA earnings per share measures. Target ranges for the relative measures are as set out on page 91. Targets for the EPS measure for the year ended 31 March 2024 are: Less than 3.85 pence per share – 0% Equal to 3.85 pence per share – 25% Greater than 4.25 pence per share – 100% A result between 3.85 pence and 4.25 pence will be calculated on a straight-line basis between 25% and 100%
Non-Executive Directors Fees
As set out in the Committee Chair’s statement, the Chair fee has been increased from £105,000 to £116,800 and the Non-Executive Director fee from £40,000 to £45,000 with effect from 1 April 2021. The supplementary fee for all Committee Chairs will be £7,500, an increase from £5,000 for the Remuneration and Property Valuation Committee Chairs. There is no change for the Chair of the Audit and Risk Committee.
Chair – £116,800 Director – £45,000 Supplementary fee for Committee Chairs – £7,500
*The Remuneration Committee has discretion to override the formulaic outcomes in both the annual bonus and LTIP. The Committee also confirms that performance has been achieved within an acceptable risk profile before payouts are made. Incentive payouts are subject to malus and clawback provisions.
96
Powered by FlippingBook