108 | Just Group PLC | Annual Report and Accounts 2023
DIRECTORS’ REMUNERATION REPORT continued
VESTING OF LTIP AWARDS WITH A PERFORMANCE PERIOD ENDING IN 2023 (AUDITED) 2021 awards
The 2021 LTIP award performance period ended on 31 December 2023. The award is forecast to vest at 98% on 24 March 2024 based on capital generation, adjusted earnings per share growth and relative TSR performance and performance against targets over the three-year period ending 31 December 2023.
Number of shares awarded
Dividend equivalent due
Number of shares due to vest 1
Value of shares due to vest 1
Date of grant
Type of award
% vesting
David Richardson
24/03/2021 24/03/2021
Nil-cost options Nil-cost options
959,704 667,131
98% 98%
£31,130 £21,640
940,509 653,788
£744,977 £517,865
Andy Parsons
1 T he value shown is based on the three month average share price to the year end, being £0.7921. This value will be trued up to reflect the actual share price at vesting in next year’s single total figure table. Summary of performance Measure Weighting Target Vesting Organic capital generation including management actions 37.5% Below £156m 0% Threshold: £156m 25% Between threshold and maximum Between 25% and 100% on a straight-line basis Maximum: £448m 100%
Actual Organic capital generation £427m; vesting outcome 35.5%
Measure
Weighting
Target
Vesting
Solvency ratio underpin to the capital metric
n/a*
Below 150%
0%
Threshold: 150%
As per capital metric outturn
* An underpin is applied to the organic capital generation metric. This metric will only vest if the solvency ratio is above 150%.
Actual 197%
Measure
Weighting
Target
Vesting
Adjusted earnings per share growth 1
37.5% Below 3% p.a. average
0%
Threshold: 3% p.a. average
25%
Between threshold and maximum Maximum: 10% p.a. average or above
Between 25% and 100% on a straight-line basis
100%
Actual Adjusted EPS growth 16% average; vesting outcome 37.5%
Measure
Weighting
Target
Vesting
Relative TSR vs. FTSE 250 25% Below median
0%
Threshold: Median
25%
Between median and upper quartile Maximum: Upper quartile or above
Between 25% and 100% on a straight-line basis
100%
Actual Relative TSR Upper quartile; vesting outcome 25% Total Actual Vesting Outcome 98%
1 A djusted EPS is calculated as underlying operating profit before tax divided by the weighted average number of shares in issue by the Group for the period. Consistent with past practice, the adjustment to the interest and number of shares reduced the reinsurance and bank financing costs by £5m, thereby reducing operating profit to £372m and the number of shares to 1,031m, resulting in an adjusted EPS of 36.1 pence. The Committee have increased the organic capital generation target for 2021 due to the change in definition of strategic costs. The organic capital targets for the 2022 and 2023 targets have also been increased to reflect the new strategic costs definition and in addition the 2022 organic capital outturn will be adjusted to reflect the ambitious growth targets set by the board and the impact on organic capital generation. The use of UOCG in the 2022 LTIP has also been reviewed by the Remuneration Committee. Given the success in delivering capital self-sufficiency ahead of schedule, the Company has been able to write new business at a higher level than envisaged when first approving the targets. For the 2022 LTIP we adopted UOCG. As such the Committee is proposing to exercise discretion at the 2022 award vesting in 2025 and remove the impact of such additional business without making the satisfaction of the targets any easier to achieve.
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