Linking pay wit
h strateg
y
We aim to d
el
i
ve
r lo
ng
-
ter
m
, sus
t
ain
ab
le v
al
ue
cre
at
io
n for a
ll o
ur s
t
a
keh
ol
de
rs t
hr
ou
gh o
ur
F
oc
us; F
i
x
; G
row s
tr
ate
g
y
The Co
mmit
tee
believes
that ex
ecutives’ reward
sho
ul
d ba
la
nce t
he n
e
ed to b
e ag
il
e an
d ha
vi
ng a
lo
ng
er-ter
m fo
cu
s
, wi
t
h s
tr
on
g al
ign
me
nt to t
he
K
PIs a
nd s
tr
ate
gi
c pr
io
r
it
ie
s of t
he G
ro
up. T
h
e
Com
mi
t
te
e b
eli
ev
es t
ha
t th
e me
as
ure
s in t
he
inc
ent
i
ve p
la
ns p
rov
i
de t
he r
i
ght b
al
an
ce be
t
w
e
en
The Remuneration
Policy and implementation
in th
e co
nte
x
t o
f th
e pr
in
cip
le
s of t
he U
K
Corporate Governanc
e Code 20
1
8 (“Code
”
)
T
he Co
mmi
t
tee b
el
ie
ve
s th
e c
ur
ren
t Pol
ic
y an
d
imp
l
eme
nt
a
ti
on a
re co
nsi
s
ten
t wi
t
h th
e si
x fa
c
to
r
s
+
– remuneration arrangements are
transparent and the
Commit
tee engages
regularly with shareholders
+
– th
e pu
r
po
se, s
tr
uc
t
ure a
nd s
t
ra
te
gic
ali
gn
me
nt of e
ac
h el
em
en
t of pa
y is
uncomplicated,
and operationally easy t
o
+
Risk
– the
re is a
n ap
pr
op
ri
ate m
ix of f
i
xed a
nd
variable pay,
and financial and non-f
inancial
objec
tives. The Committee has the
discretion
to ov
er
ri
de f
or
mu
la
ic ou
tco
m
es
, an
d ma
lu
s
an
d cla
w
ba
ck p
ro
vi
si
ons a
re in p
la
ce
+
– th
e ra
ng
e of p
os
sib
l
e pa
y
ou
tco
me
s is s
et o
ut i
n th
e pe
r
for
ma
nc
e sce
na
ri
o
+
–
executives ar
e inc
entivised
to ac
hi
ev
e s
tr
etc
hin
g t
ar
ge
t
s ov
er a o
ne
- a
nd
three-
year period with clear links to the
deliver
y
de
sig
ne
d to su
pp
or
t t
he d
el
i
ver
y o
f th
e Gr
oup
’
s
lo
ng
-
ter
m s
t
ra
te
gy, an
d th
e in
tere
s
t
s o
f it
s
shareholders and employees. A
s set out above,
the performance metrics used to
determine
va
ri
ab
le p
ay o
u
tcom
es d
ire
c
t
l
y al
ig
n wi
t
h ou
r
strategy with indiv
idual performance con
sidered
in t
he co
nte
x
t o
f th
e Gr
oup
’s A
SPIR
E v
alu
e
s.
Mal
us a
nd C
la
wb
ac
k al
lo
w fo
r ad
jus
t
m
ent o
f
ou
tco
me
s for f
ai
lu
re to a
c
t in a
cco
rda
nc
e wi
t
h
com
pa
ny p
ur
po
s
e, va
lu
es a
nd s
t
ra
te
g
y. Fur
th
er
informa
tion reg
arding
how
our ex
ecutive
rem
un
era
t
io
n is li
nke
d to ou
r s
tr
ate
g
y c
an b
e
fou
nd o
n pa
ge
s 2
2 an
d 23
.
Remuneration
scenarios for Executive Directors
T
he c
har
t
s o
n th
e ri
gh
t sh
ow t
he v
al
ue of t
h
e
package eac
h of
the Executive
Directors would
rec
ei
ve b
as
ed o
n 2021 ba
se s
al
ar
y, be
ne
f
i
t
s a
nd
2021 ann
ual b
on
us a
nd LT
IP aw
ar
ds
, as
su
min
g
the following scenarios.
AWCT
45%
TSR
25%
ROIC
25%
Organic
revenue
growth
25%
Strategic
15%
Organic
profit
growth
40%
Average Working Capital Turn
focuses on cash returns and
business efficiency.
TSR directly measures shareholder
returns relative to the FTSE 250. It
provides alignment between
executives and shareholders.
ROIC demonstrates how well the
Company is performing and being
managed over the medium to
long term.
Organic revenue growth targets
provides an indication of the rate
at which the Group’s business
activity is expanding.
Organic profit growth
demonstrates that the additional
revenue is being gained without
profit margins being compromised.
Organic profit growth is a key
internal performance measure
which demonstrates that the
additional revenue is being
gained without profit margins
being compromised.
Individual strategic objectives
focus on key enablers to drive
forward the strategy such as
engagement, succession
planning and transformation.
Organic
profit
growth
25%
0%
100%
Maximum + 50%
share growth
Long-term
variable pay
Fixed pay
100%
39%
25%
36%
25%
32%
43%
21%
26%
53%
3,961
3,262
2,109
817
Annual
variable pay
Long-term
variable pay
variable pay
Maximum + 50%
share growth
100%
41%
28%
31%
27%
36%
36%
23%
31%
46%
2,119
1,792
1,171
485
F
ixe
d p
ay i
nc
l
ud
e
s 2021 a
nn
ua
l s
al
ar
y, an
d a
c
t
ua
l be
ne
f
it
s a
n
d pe
ns
io
n
. F
or t
h
e Ch
ie
f E
xe
cu
t
i
ve t
h
e pe
ns
io
n h
as b
ee
n c
al
c
ul
at
ed
T
ar
g
et
: F
i
xed p
a
y, ta
rg
e
t bo
nu
s a
nd e
x
pe
c
t
ed v
a
lu
e of LT
IP
Ma
x
im
um: F
i
xe
d p
ay, ma
x
im
u
m bo
nu
s an
d m
ax
i
mu
m ve
s
t
in
g un
d
er LT
IP
Ma
x
im
um + 5
0
% sh
ar
e pr
i
ce: M
ax
i
mu
m pl
u
s 50
% s
ha
re p
ri
ce g
ro
w
t
h o
n LTI
P
