116 | Just Group PLC | Annual Report and Accounts 2023
DIRECTORS’ REMUNERATION REPORT continued
Element
Policy approach
Maximum STIP opportunity remains unchanged at 150% of salary for Executive Directors. 50% of maximum will pay out for on-target performance. The core bonus for 2024 will be determined by a balanced scorecard of performance against financial and strategic measures. The financial measures are: • 40% based on new business profit measure • 30% based on underlying operating profit • 30% based on new business strain The strategic measures, which can increase or decrease the bonus pool available (subject always to a maximum bonus pool of 100%) are: • “Customer” (customer experience) • “People” (engagement, belonging and gender diversity) The core bonus is modified based on personal performance during the year. While not expected in the normal course, the Committee retains the flexibility to pay up to 200% of the maximum bonus opportunity based on personal performance only. The Committee has chosen not to disclose in advance details of the STIP performance targets for the forthcoming year as these include items which the Committee considers commercially sensitive. An explanation of bonus pay outs and performance achieved will be provided in next year’s Annual Report on remuneration. 40% of any bonus earned will be deferred for three years into awards over shares under the Deferred Share Bonus Plan.
SHORT TERM INCENTIVE PLAN (“STIP”)
LONG TERM INCENTIVE PLAN (“LTIP”) Awards will be made over shares with a face value of 200% and 150% of salary in 2024 to the CEO and CFO respectively. The awards made in 2024 will be subject to the conditions below, calculated over the three financial years to 31 December 2026, and will be subject to a further two-year post-vesting holding period. Performance conditions and targets applying to the 2024 LTIP awards Condition Weighting Target Vesting Cash Generation 15% Below £291m 0% Threshold: £291m 25% Between threshold and maximum Between 25% and 100% on a straight-line basis Maximum: £341m 100% Relative TSR vs. FTSE 250, excluding investment trusts 25% Below median 0% Median 25% Between median and upper quartile Between 25% and 100% on a straight-line basis Upper quartile or above 100% Return on equity 45% Below 10% p.a. average 0% Threshold: 10% p.a. average 25% Between threshold and maximum Between 25% and 100% on a straight-line basis Maximum: 15% p.a. average or above 100% ESG – investments emissions reduction by 2026 15% Below 38% 0% Threshold: 38% 25% Between threshold and maximum Between 25% and 100% on a straight-line basis Maximum: 50% 100%
APPROVAL This report was approved by the Board of Directors on 7 March 2024 and signed on its behalf by:
MICHELLE CRACKNELL Chair, Remuneration Committee 7 March 2024
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