STRATEGIC REPORT
FINANCIAL STATEMENTS
Governance
DIRECTORS’ REMUNERATION REPORT
IFRS NET ASSETS £ 2,178 m 2021: £2,440m UNDERLYING ORGANIC CAPITAL GENERATION 1 £ 29 m 2021: £51m UNDERLYING OPERATING PROFIT BEFORE TAX 1 £ 249 m 2021: £238m
NEW BUSINESS PROFIT 1 £ 233 m 2021: £225m IFRS LOSS BEFORE TAX £ (317) m 2021: £(21)m
return on equity 1
11 % 2021: 8%
1 Alternate performance measure.
COMMITTEE ROLE AND MEMBERSHIP Role
The Remuneration Committee (the “Committee”) determines the policy for the remuneration, benefits, pension rights and compensation payments of the Chair, Executive Directors, Senior Management and Solvency II identified staff. The Committee ensures that no director or employee is involved in decision making on their own remuneration or is present in Committee meetings when their own remuneration is being decided. The Committee also reviews and recommends for approval by the Board (and where required, the shareholders) the design of, and determine the targets for, the operation of all share incentive plans, including all schemes involving the grant of shares awards, in which Executive Directors, Senior Management and identified staff participate. For any such schemes or plans, it determines each year whether the awards will be made, and if so, approves the levels of participation in such schemes or plans by those individuals. The full responsibilities of the Committee are set out in the terms of reference, which are reviewed annually and can be found at www.justgroupplc.co.uk . STATEMENT FROM THE CHAIR OF THE REMUNERATION COMMITTEE Dear Shareholder This year the business has faced a number of challenges as a result of an uncertain macro economic climate, in particular the interplay between rising interest rates to combat inflation and a fragile economy post COVID-19. However, through strong leadership and culture, and a clear understanding of our risks, we have delivered profitable and sustainable growth and helped more of our customers achieve a better later life. Our financial position has never been stronger as a result of continued high delivery against stretching objectives in 2022. Sales in 2022 were up 17% to £3.1bn, driven by growth in DB sales which were up 33% to £2.6bn. This was as a result of almost double the number of DB transactions from 2021. Underlying operating profit increased by 19% helped by improved in-force returns and lower financing costs. We achieved these financial results in an increasingly sustainable way and reduced our market based buildings emissions by 13% (see the Sustainability and environment section on page 33) and invested £279m of our investment portfolio in eligible green and social assets. Alongside the good progress being made on the financial business priorities, the Group continued to enjoy excellent employee engagement levels as reported in the Colleagues and culture section, and positive progress on building a diverse and inclusive workforce. In addition, we have received well-deserved external recognition for products and service to customers (see page 3 for details).
I am pleased to present the Remuneration Committee Report for the year ended 31 December 2022.
IAN CORMACK Chair, Remuneration Committee
MEMBERSHIP AND MEETINGS Ian Cormack Chair Michelle Cracknell Independent Non-Executive Director
John Hastings-Bass Chair of the Board Mary Phibbs Independent Non-Executive Director
Committee meeting attendance can be found on page 79. Biographies of Committee members can be found on pages 68 to 70.
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