Remuneration Committee report Annual statement Looking beyond the pandemic
Our new Remuneration Policy will balance an increase to variable remuneration with a reduction in the threshold vesting level for the LTIP and an increase to the toughness of the LTIP’s stretch EPS target. At the same time, if the new Policy is approved, we will immediately reduce Executive Director pension contributions to the workforce level of 4.5%, and adopt a more demanding post-employment shareholding policy.
2020/21 highlights • Consultation with shareholders following the 2020 AGM • Development of Remuneration Policy for 2021–24 and a second consultation with shareholders • Launch of a new Restricted Share Plan to broaden colleague share ownership 2021/22 priorities • Implement our new Remuneration Policy following approval at the AGM • Integrate Iron Mountain remuneration practices into the Group • Consider the introduction of ESG measures • Continue to ensure our incentive arrangements support the Group’s long-term strategy
Jonathan Brooks Committee Chair
On behalf of your Board, I am pleased to present our Directors’ Remuneration Report (DRR) for the year ended 31 May 2021. The report is divided into three sections: an Annual Statement, our Directors’ Remuneration Policy and the Annual Report on Remuneration, which sets out the actual application of the Policy. Annual Statement 2020/21 was another busy year for the Remuneration Committee and we had seven meetings in total. The Committee, which remained unchanged for the third year in succession, comprised Chris Batterham, Jennifer Duvalier and me as Chair. Our Board Chair, Chris Stone, also attended all the meetings. We invited our remuneration consultants, Chief People Officer, CEO, CFO, and other executives to meetings as required. Consultation with shareholders following 2020 AGM The arrival of the Covid-19 pandemic at the start of 2020 obliged us to wrestle with the immediate impact to our business of a significant period of uncertainty. The impact of the pandemic fell late on in the financial year and it was immediately apparent that forecasting the financial effects for both the end of the 2019/20 financial year as well as the 2020/2021 financial year would be extremely difficult, although we are pleased that we did not furlough any staff, make any staff redundant or reduce our dividend. As a Committee, and mindful of the desire to keep colleagues appropriately rewarded for their performance and incentivised to deliver the best outcomes for our shareholders during such a difficult period, we took some immediate action to address this period of uncertainty. Firstly, we
* The Directors consider that Adjusted operating profit less a proforma amortisation charge in respect of certain cloud-based software arrangements is comparable to Adjusted operating profit previously reported. See Strategic Report for further details and a reconciliation between Adjusted operating profit of £39.2m and Adjusted operating profit less a proforma amortisation charge in respect of certain cloud-based software arrangements of £36.2m.
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