The Remuneration Policy is based on the following broad principles set by the Remuneration Committee to:
- provide a competitive remuneration package to attract and retain quality individuals;
- align remuneration to drive the overall objectives of the business;
- align the interests of management with the interests of shareholders; and
- provide the foundation for overall reward and remuneration beyond the specific roles falling within the direct remit of the Remuneration Committee.
In implementing its policy, the Remuneration Committee gives full consideration to the principles set out in the Code with regard to Directors’ remuneration and due regard is given to the guidance issued by investor protection bodies and institutional investors more generally.
Remuneration policy is reviewed on an ongoing basis against the Committee’s broad principles and in light of emerging best practice in corporate governance.
Remuneration link to strategy
Our focus is to deliver long-term success for the business and shareholders and we seek to achieve this through various strategic initiatives. These are set out below together with the corresponding element of remuneration targeted to drive and incentivise their achievement.
|
Strategic initiatives |
Measurement through the Incentives |
|
Revenue growth |
Normalised profit before tax target in the annual bonus plan |
|
Cost efficiency and better margins |
ROCE and TSR targets attaching to LTIP awards |
|
Operational excellence - safety, customers, people, community |
Non-financial goals in the annual bonus plan |
|
Superior cash and returns |
Free cash flow target in the annual bonus plan |
|
Creating new business opportunities |
Non-financial goals in the annual bonus plan |
A minimum shareholding requirement of 200% of salary exists for the Group Chief executive and 150% of salary for the other Directors. This aligns their interests with those of shareholders by focusing them on the execution of the business strategy and the creation of long-term shareholder value.