Governance
Strategic Report
Financial Statements
Additional Information
As discussed in the Committee Chair’s statement on pages 106 to 109, the Committee considered the formulaic bonus outcome in the context of the Group’s overall performance for the year and concluded that it was satisfied that the formulaic bonus outcome was a fair reflection of overall Group performance during the year. The Committee was also satisfied that the above performance was achieved within an acceptable risk profile. Subject to the estimated total return component noted above, the overall annual bonus outcome for the Executive Directors is, therefore, as follows: Financial metrics (out of maximum 60%) Corporate objectives (out of maximum 40%) Overall bonus % of maximum Bonus % of salary
Total bonus £
Michael Morris Andrew Dewhirst
29.4 29.4
29.4 29.4
58.8 58.8
91.1 301,300 91.1 204,800
This year the Committee has determined that the proportion of the bonus deferred be increased to 60% of the annual bonuses awarded to the Executive Directors and payable in shares in two years’ time. Dividend equivalents will accrue on the shares and these will be paid in cash when the awards vest. Long-term Incentive Plan The LTIP awards granted on 29 June 2020 were subject to performance conditions for the three years ended 31 March 2023. The performance conditions and the actual performance for these were as follows:
Awarded (% of maximum)
Weighting (% of award)
Performance condition
Basis of calculation
Range
Actual 4.6%
Total shareholder return versus comparator group
Less than median – 0% Equal to median – 25% Equal to upper quartile – 100% Less than median – 0% Equal to median – 25% Equal to upper quartile – 100% Less than 3.75 pence per share for the year ended 31 March 2023 – 0% Equal to 3.75 pence per share for the year ended 31 March 2023 – 25% Equal or greater than 4.1 pence per share for the year ended 31 March 2023 – 100%
Median – 9.4% Upper quartile – 22.0%
33.3%
0%
Total property return versus MSCI Index
Median – 2.5% Upper quartile – 4.3%
6.8% (above upper quartile)
33.3% 100%
Growth in EPRA EPS
3.90p
33.3% 57.7%
The Committee was satisfied that the above performance was achieved within an acceptable risk profile. As discussed in the Committee Chair’s statement on pages 106 to 109, the Committee considered the formulaic LTIP outcome in the context of the Group’s overall performance over the performance period and concluded that it was satisfied the formulaic outcome was a fair reflection of overall Group performance during the period. Based on the vesting percentage above, the shares awarded and their estimated values, using an average share price of 74.41 pence for the quarter ended 31 March 2023, are:
Estimated
value 1,2 £
Maximum number of shares at grant
Number of shares vesting
Number of lapsed shares
Director
Michael Morris Andrew Dewhirst
309,275 185,070
162,524 97,254
146,751
136,980
87,816
81,970
1. The estimated value includes dividend equivalent awards which will be made in relation to vested LTIP awards at the point of vesting. The value of the dividend equivalent awards is £16,050 (Michael Morris) and £9,600 (Andrew Dewhirst). 2. £5,980 (Michael Morris) and £3,580 (Andrew Dewhirst) of this value relates to share price growth since the date of grant. The following awards in the Long-term Incentive Plan were granted to the Executive Directors on 17 June 2022:
Award face value (£) 413,281 247,308
Face value per share (£)
Threshold vesting
Basis (% of salary)
Performance period
Number of shares
Michael Morris Andrew Dewhirst
437,473 261,784
125% 0.9447 110% 0.9447
1 April 2022 to 31 March 2025 1 April 2022 to 31 March 2025
25% 25%
Picton Property Income Limited Annual Report 2023
117
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