Just Annual Report and Accounts 2023

114 | Just Group PLC | Annual Report and Accounts 2023

DIRECTORS’ REMUNERATION REPORT continued

Total remuneration of the CEO during the same period (unaudited) The total remuneration of the CEO over the last ten years is shown in the table below.

Year ended 30 June

Year ended 31 December

2014

2015

2016 1

2017

2018

2019 2

2020

2021

2022

2023

Chief Executive

Total remuneration (£000) STIP (% of maximum) LTIP (% of maximum)

1,196 1,357

2,630 2,369 2,507

438 1,440 1,541 1,577 2,470 2,356

63% 89% 97.5% 95.0% 91.2% 0% 83.1% 85% 80% 75% 90%

n/a

n/a 39.5% 50.0% 50.0% 50.0% 50.0% 19.75% 31.8% 93% 98%

1 T he year ended 31 December 2016 covered 18 months following the change of year end from 30 June. The total single figure of remuneration for the 12 month period ended 31 December 2016 was £1,870,000. 2 R odney Cook (“RC”) stood down as CEO from 30 April 2019 and David Richardson (“DR”) assumed the role of CEO from this date (initially on an interim basis). The total single figure remuneration for Rodney Cook in 2019 represents four months to 30 April 2019 and the full vesting value of the 2017 LTIP and for David Richardson represents 8/12ths of his pay in 2019. CEO pay ratio This is the fifth year in which Just Group has been required to publish its CEO pay ratio.

25th percentile pay ratio

50th percentile pay ratio

75th percentile pay ratio

Year

Method 1

2023 2022 2021 2020 2019 2

Option A Option A Option A Option A Option A

62 : 1 73 : 1 47 : 1 42 : 1 44 : 1

38 : 1 44 : 1 29 : 1 26 : 1 28 : 1

21 : 1 25 : 1 17 : 1 16 : 1 17 : 1

1 O ption A was selected as it provided a full picture of pay across the Group. The Company determined the single figure remuneration for all UK employees on a FTE basis as at 31 December of the relevant year and used this to identify the three employees who represent the 25th percentile, 50th percentile and 75th percentile by total pay. FTE remuneration was determined by reference to pay across 260 working days per year over a 35 hour week. Cases where employees were on maternity leave have been excluded as their remuneration in the year was not felt to be an accurate reflection of their ordinary pay levels. This did not have a material impact on the ratios and so the Committee is satisfied that the three individuals are reflective of the three percentiles. 2 T he total pay and benefits for the role of CEO in 2019 was calculated using Rodney Cook’s base salary, benefits and pension contributions for the four months to 30 April 2019 and David Richardson’s base salary, benefits and pension contributions for the remainder of the year, full year 2019 annual bonus and 2017 LTIP award which vests based on performance to 31 December 2019. The median pay ratio was fairly consistent between 2019 to 2021. The slight reduction between 2019 and 2020 was due to a reduction in CEO remuneration. An increase was then seen in 2021 as a result of a reduction in management layers affecting the employee mix and reducing the average cost of total pay for employees. The movement in the ratio between 2021 and 2022 was solely attributable to the vesting percentage of the 2020 LTIP at 93% being notably higher than the vesting percentage of the 2019 LTIP at 31.8%. Had the 2020 LTIP vested at the same percentage as the 2019 LTIP, the ratio would have decreased slightly. The reduction between 2022 and 2023 represents the 6% average payrise for employees. The table below shows the total pay and benefits and the salary component of this for the employees who sit at each of the three quartiles in 2023.

Salary component of total pay

£000

Total pay and benefits

25th percentile 50th percentile 75th percentile

38 62

31 34 78

111

Group Chief Executive

2,356

630

The Group Chief Executive Officer was paid 38 times the median employee in 2023. The Remuneration Committee is confident that this is consistent with the pay, reward and progression policies for the Company’s UK employees. The base salary and total remuneration for the CEO and the median representative employee are competitively positioned within the relevant markets and reflect our remuneration structures which are effective in appropriately incentivising and rewarding employees for both what they achieve, as well as how they do so, while having due regard to our risk appetite. Just provides competitive reward and benefit packages to all employees ensuring pay is at or above the real living wage, while allowing for full participation in the pension arrangements. We have a career progression framework for our operations teams providing incremental salary increases as they develop in role and gain new skills. Annual benchmarking is conducted for all roles and corrective action taken where an individual is remunerated below the target level. Our competitive pension scheme provides for employer contributions of up to 10%. We have a comprehensive benefits package allowing employees to select benefits of value to them and employees are invited to participate in the annual SAYE offering. The Committee will continue to monitor the CEO pay ratio and gender pay gap statistics as part of its overview of all employee pay.