Remuneration, and in particular executive pay, remains an issue of interest among our shareholders and wider society.
The remuneration committee commenced a review of pay arrangements across the organisation during the course of 2015. This process has involved a critical examination of each element of executive compensation in the context of the following principles:
Alignment with strategy – our Remuneration Policy should actively support an alignment with the Company’s strategy and business model and should incentivise executives to deliver our long-term strategic objectives for the benefit of shareholders.
Simplicity – our pay structures should be simple and transparent, thereby improving line of sight for participants and increasing clarity for investors.
Best practice – our remuneration arrangements should appropriately reflect shareholders’ expectations and include best practice themes as they develop.
Against this background, the committee has formulated a new remuneration framework intended to provide a better balance between driving short-term performance and rewarding long-term success.
As part of the process surrounding the design of our new Directors’ Remuneration Policy, we consulted extensively with the Company’s major investors and their representative bodies in order to understand their views on our proposed changes. The final policy will be presented at this year’s AGM on 19 May 2017, when shareholders will be asked to vote on the contents of the new Directors’ Remuneration Policy.
Full details of the policy are set out in our 2016 Annual Report.