Directors’ remuneration policy
The Remuneration Committee determines the Company’s policy on the remuneration of the Executive Directors and (from 1 June 2019) the Executive Committee (ExCom). The principles which underpin the Remuneration Policy for the Company are to: • Ensure Executive Directors’ rewards and incentives are directly aligned with the interests of the shareholders in order to reinforce the strategic priorities of the Group, optimise the performance of the Group and create long-term sustained growth in shareholder value, without encouragement to take undue risk • Provide the level of remuneration required to attract, retain and motivate Executive Directors and senior executives of an appropriate calibre • Ensure a proper balance of fixed and variable performance related components, linked to short and longer-term objectives and delivered in a mix of cash and shares • Reflect market competitiveness, taking account of the total value of all the benefit elements Our remuneration strategy has been designed to reflect the needs of a complex multinational organisation, which has grown both organically and by acquisition. Remuneration for the Executive Directors is structured so that the variable pay elements (annual bonus and long-term incentives) form a significant proportion of the overall package. This provides a strong link between the remuneration paid to Executive Directors and the performance of the Group, as well as providing a strong alignment of interest between the Executive Directors and shareholders. For the purposes of section 226D-(6)(b) of the Companies Act 2006, this Policy, if approved, will take effect from the date of the 2021 AGM on 4 November 2021.
Current Policy table for Executive Directors
Changes since last Directors’ Remuneration Policy
Purpose and link to short and long-term strategic objectives Salary To attract, retain and reward high calibre Executive Directors
Operation (including framework to assess performance)
Maximum opportunity
N/A
Details of current Executive Director salaries are set out on page 110. Salary increases are normally in line with those for other colleagues but also take account of other factors such as changes to responsibility,
The Remuneration Committee reviews salaries for Executive Directors and also the Executive Committee (ExCom) annually unless responsibilities change. Pay reviews take into account Group and personal performance. Salaries are set on appointment and benchmarked periodically against market data for companies operating in IT services, management consulting and relevant high tech sectors, which, although not directly comparable, provide an indicative range. In setting appropriate salary levels the Committee takes into account pay and employment conditions of colleagues elsewhere in the Group, alongside the impact of any increase to base salaries on the total remuneration package. Any changes are normally effective from 1 June each year. Benefits in kind currently include the provision of a car or car allowance, payment of private fuel, car insurance, private medical insurance, life assurance and permanent health insurance. Executive Directors may be invited to participate in the Sharesave Scheme approved by HMRC or other benefits introduced for all colleagues. Executive Directors are entitled to a Company pension contribution, which is paid into the Group defined contribution personal pension scheme. They can also opt to have the same level of contribution made in the form of a cash contribution. For both the current CEO and CFO, cash contributions in lieu of a pension are paid.
development and the complexity of the role.
Benefits To attract, retain and reward high calibre Executive Directors
N/A
Market-competitive benefits. SAYE Sharesave Scheme subject to HMRC-approved limits.
Pension To provide a
Alignment of Executive Directors’ pensions with the wider workforce from 1 December 2021.
Until 30 November 2021: up to 10% of base salary as a contribution into the Group scheme or base salary supplement of 10% of base salary. From 1 December 2021: capped at the level of the majority of the workforce (currently 4.5%).
competitive benefit, which attracts high calibre executives and allows flexible retirement planning to suit individual needs
NCC Group plc — Annual report and accounts for the year ended 31 May 2021
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