Governance
Strategic Report
Financial Statements
Additional Information
Benefits Purpose
Part of a competitive remuneration package.
This principally comprises: – Private medical insurance – Life assurance – Permanent health insurance The Committee may agree to provide other benefits as it considers appropriate.
Operation
Benefits are provided at market rates.
Maximum
None None
Performance measures
Clawback
Annual bonus Purpose
A short-term incentive to reward Executive Directors on meeting the Company’s annual financial and strategic targets and on their personal performance. The Committee may determine that up to 50% of the annual bonus will be paid in the Company’s shares and deferred for two years. Dividend equivalents will be paid at the end of the deferral period (in the form of shares or cash). The maximum bonus permitted under the Policy will be 175% of base salary. The level of bonus opportunity within this maximum will be determined by the Committee each year. In 2023/24, the maximum opportunity will be limited to 145% of base salary. The annual bonus is based on a range of financial, strategic, ESG, operational and individual targets (measured over a period of up to one year) set by the Committee. The weightings will also be determined annually to ensure alignment with the Company’s strategic priorities although at least 50% of the award will be assessed on corporate financial measures. For corporate financial measures, 50% of the maximum bonus opportunity will be payable for on-target performance and, if applicable, up to 25% for threshold performance. Malus and clawback provisions may be applied in the event (within two years of bonus determination/grant of the deferred bonus shares) of a material misstatement of the audited financial results, an error in assessing a performance condition applicable to the award or in the information or assumptions on which the award was granted or is released, a material failure of risk management, material misconduct on the part of the award holder or a corporate failure. A long-term incentive plan to align Executive Directors’ interests with those of shareholders and to promote the long-term success of the Company. Awards are granted annually usually in the form of a conditional share award or nil cost option. Awards will normally vest at the end of a three-year period subject to meeting the performance conditions and continuing employment. The Remuneration Committee may award dividend equivalents (in the form of shares or cash) on awards that vest. The Committee will usually apply a holding period of a further two years to awards that vest. Annual awards with a maximum value of up to 150% of base salary may be made. Vesting will be subject to performance conditions, aligned to the corporate strategy, as determined by the Committee on an annual basis. There will be three performance conditions, each measured over a three-year performance period. Each condition will be equally weighted, but the Committee has the flexibility to vary this for each award. For threshold levels of performance up to 25% of the award vests, rising usually on a straight-line basis to 100% for maximum performance. Malus and clawback provisions may be applied in the event (within five years of grant) of a material misstatement of the audited financial results, an error in assessing a performance condition applicable to the award or in the information or assumptions on which the award was granted or is released, a material failure of risk management, material misconduct on the part of the award holder or a corporate failure.
Operation
Maximum
Performance measures
Clawback
Long-term Incentive Plan Purpose
Operation
Maximum
Performance measures
Clawback
Picton Property Income Limited Annual Report 2023
113
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