Remuneration Report continued
Long-term Incentive Plan awards (performance period to 31 March 2022)
In my role as designated Non-Executive Director with responsibility for employee engagement I had an informal meeting with the whole team, excluding the Executive Directors, in May 2021, which covered a number of topics including the remuneration process and how the Committee considered market data and other factors in determining salary and bonus awards. Additionally, we have carried out the annual employee survey, the results of which are set out elsewhere in the Report. Corporate Governance Code 2018 We have considered the provisions of the 2018 Code in respect of remuneration and believe that our approach remains compliant. In particular, we operate a consistent level of pension provision across our workforce; LTIP awards are only released to Executive Directors five years after award; and malus and clawback provisions apply to all incentive awards. We have provisions in the rules of our remuneration share plans that prevent, other than in exceptional circumstances, accelerated vesting of awards when an employee leaves Picton. We also have post- employment shareholding guidelines in place.
The awards made under the Long-term Incentive Plan (LTIP) in June 2019 were based on three performance conditions measured over the three-year period ended on 31 March 2022. The LTIP provides the link between the long-term success of the Company and the remuneration of the whole team. The Committee has assessed the extent to which these three performance conditions have been met. The three equally weighted performance conditions were total shareholder return, total property return and growth in EPRA earnings per share. The actual outcomes for these conditions are set out in the Annual Remuneration Report and give rise to an overall award of 54% of the maximum granted. As explained above, the Committee concluded that it was satisfied the formulaic outcome was a fair reflection of overall Group performance over the performance period. Employee remuneration and engagement As in prior years, the Committee received an independent benchmarking report covering each of the roles, which detailed market trends. Having considered the report, the Committee determined that, for the team as a whole (excluding the Executive Directors), there would be an overall average rise of 8.8% in base salaries with effect from 1 April 2022. The average employee bonus (excluding the Executive Directors) increased by 13.2% reflecting alignment between employee pay and our strong business performance.
Picton Property Income Limited Annual Report 2022
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