GOVERNANCE REPORT
95
TOTAL SHAREHOLDER RETURN (UNAUDITED) Group’s share performance compared to the FTSE 250 Index
The following graph shows a comparison of the Group’s Total Shareholder Return (share price growth plus dividends paid) with that of the FTSE 250 Index (excluding investment trusts). The Group has selected this index as it comprises companies of a comparable size and complexity across the period and provides a good indication of the Group’s relative performance.
180
160
140
120
100
80
60
40
20
11/11/2013
30/06/2014
30/06/2015
31/12/2016
31/12/2017
31/12/2018
31/12/2019
Just Group
FTSE 250 (excluding investment trusts)
Total remuneration of the CEO during the same period (unaudited) The total remuneration of the CEO over the last six years is shown in the table below.
Year ended 30 June
Year ended 31 December
2013
2014
2015
2016 1
2017
2018
2019 2
2019 2
Chief Executive
RC
RC
RC
RC
RC
RC
RC
DR
Total remuneration (£’000)
1,052
1,196
1,357
2,630
2,369
2,507
314
994
STIP (% of maximum) LTIP (% of maximum)
86% 63% 89% 97.5% 95.0% 91.2% 0% 83.1%
n/a
n/a
n/a 39.5% 50.0% 50.0% 50.0% 50.0%
1 The year ended 31 December 2016 covered 18 months following the change of year end from 30 June. The total single figure of remuneration for the 12 month period ended 31 December 2016 was £1,870,000. 2 Rodney Cook stood down as CEO from 30 April 2019 and David Richardson assumed the role of CEO from this date (initially on an interim basis). The total single figure remuneration for Rodney Cook represents four months to 30 April 2019 and for David Richardson represents 8/12ths of his pay in 2019. CEO Pay ratio This is the first year in which Just Group has been required to publish its CEO pay ratio. 15 : 1 1 Option A was considered the most appropriate methodology. The Company determined the single figure remuneration for all UK employees on a FTE basis by reference to the financial year ended 31 December 2019 and used this to identify the three employees who represent the 25th percentile, 50th percentile and 75th percentile by total pay. FTE remuneration was determined by reference to pay across 260 working days per year over a 35 hour week. Cases where employees were on maternity leave have been excluded as their remuneration in the year was not felt to be an accurate reflection of their ordinary pay levels. This did not have a material impact on the ratios and so the Committee is satisfied that the three individuals are reflective of the three percentiles. Year Method 25th percentile pay ratio 50th percentile pay ratio 75th percentile pay ratio 2019 Option A 1 41 : 1 26 : 1
The table below shows the total pay and benefits and the salary component of this for the employees who sit at each of the three quartiles.
£’000
Total pay and benefits
Salary component of total pay
25th percentile 50th percentile 75th percentile
38 61
26 32 65
102
Group Chief Executive 613 1 The total pay and benefits for the role of CEO in the year has been calculated using Rodney Cook’s base salary, benefits and pension contributions for the four months to 30 April 2019 and David Richardson’s base salary, benefits and pension contributions for the remainder of the year, full year 2019 annual bonus and 2017 LTIP award which vests based on performance to 31 December 2019. The Chief Executive Officer is paid 26 times the median employee. The Remuneration Committee is confident that this is consistent with the pay, reward and progression policies for the company’s UK employees. The Committee will continue to monitor the CEO pay ratio and gender pay gap statistics as part of its overview of all employee pay. 1,573 1
Powered by FlippingBook