JUST GROUP PLC Annual Report and Accounts 2019
80
Directors’ remuneration report
I am pleased to present the Remuneration Committee Report for the year ended 31 December 2019
STATEMENT FROM THE CHAIR OF THE REMUNERATION COMMITTEE
Dear Shareholder
This year has seen our business face a number of macro-economic and regulatory challenges. However, against this backdrop we have made substantial change and strong operational progress, as set out in the Strategic report. Following Rodney Cook stepping down as Group Chief Executive Officer on 30 April 2019, David Richardson took on the Chief Executive Offer role, albeit on an interim basis until September 2019, when he was appointed permanently. Over the last eight months of 2019, David has spearheaded a fundamental refocus of the business by significantly reducing the capital intensity of new business as we adapt to the new regulatory requirements. This has required the management team to pursue innovative partnering and reinsurance opportunities, and achievements on these fronts in 2019 have had a significant positive in-year impact on the capital position of the Company. To reinforce the focus on capital, organic capital generation was introduced as a Short Term Incentive Plan (“STIP”) measure in 2019. During the course of the year, the Remuneration Committee used their discretion to adjust the weighting of this measure to further reinforce its importance from 25% to 50%. This was adjusted at the expense of the profit measures (IFRS New Business Profit and IFRS Adjusted Operating Profit), which decreased from a combined weighting of 50% to 25%. The actions taken by David Richardson and his management team have been supported by shareholders and using the capital base wisely will remain a key strategic focus in 2020 in the pursuit of sustainable organic capital generation. Remuneration Committee membership in 2019 REMUNERATION COMMITTEE 2019 The Committee is made up exclusively of independent Non-Executive Directors. The terms of reference are available on the Company website. The focus of the Committee includes the remuneration strategy and policy for the whole Company as well as the Executive Directors. The key activities of the Committee during the year included: • reviewing and approving the Directors’ Remuneration Report; • approving the grant of the 2019 awards and performance conditions under the Long Term Incentive Plan; • determining the leaver terms regarding Rodney Cook, Chief Executive Officer; • assessing the performance of Executive Directors against the 2019 corporate financial and personal non-financial performance targets set for the annual bonus and approving the payments; • review of the Company’s gender pay gap data; and • monitoring the developments in the corporate governance environment and investor expectations. Member Appointment period Meetings attended Ian Cormack (Chair) Chris Gibson-Smith 4 April 2016 – present 4 April 2016 – present 10/10 9/10 Michael Deakin Steve Melcher 23 March 2015 – 15 July 2019 7/7 15 May 2016 – present 9/10
IAN CORMACK Chair, Remuneration Committee 11 March 2020
IFRS net assets
IFRS adjusted operatinG profit before tax 1 £ 218.6 M 2018: £210.3m IFRS NEW BUSINESS PROFIT 1 £ 182.3 M 2018: £243.7m
£ 2,321.0 M 2018: £1,663.8m
Organic capital generation 1 £ 36 M 2018: £(165)m
IFRS Profit Before Tax
£ 368.6 M 2018: £(85.5)m
1 Alternative performance measure.
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