Nominations Committee Committee members Christopher Kemball (Chair)
38 Anchor Hanover Group Annual Report & Financial Statements 2024 • The STIP helps to mitigate attraction and retention risks in relation to executive and senior leadership appointments, ensuring stability in a changing and challenging employment market. • There continues to be media interest in executive remuneration. Having a clear alignment of organisational success on a balanced scorecard basis with bonus payments is an important mitigation of reputational risk. relevant stakeholders and is satisfied that the Remuneration Policy and STIP have operated as intended during the year. These have supported the delivery of Anchor’s strategic objectives in a challenging operating environment, whilst also adhering to Anchor’s values of Accountability, Respect, Courage and Honesty. The STIP is considered appropriate in the market and forms a key part of the reward package which attracts and retains a high calibre of executive and senior leaders. The STIP is discretionary and separate to Anchor’s Executive Remuneration Policy. The Remuneration Committee has considered a variety of risks relating to the deployment of a STIP including: • If the success factors in the STIP are not set carefully, this may drive undesirable behaviours. A clear performance management framework and culture are in place to manage this. by the Board, of a base award of 10.0% of salary (2023:10.5%) for Executive Committee members, including the CEO and CFO who are members of the Anchor Board. The Committee took into account how the Executive Committee demonstrated Anchor’s values and built a strong culture during the year, as well as whether or not targets were met. Remuneration Review In the year to 31 March 2024, the Chief Executive received a salary of £300,000 and an STIP award of £30,062 for the year. The CFO received a salary of £200,000 and an STIP award of £27,598. The total bonus pool for the Executive Committee was £142,132 (2023: £192,139). In line with the rules of the scheme, the committee has discretion to override formulaic STIP outcomes. They may decide at any time, acting fairly and reasonably, to withhold or clawback any payments made to colleagues under this scheme in the event of misstatement, serious or gross misconduct, mismanagement, or incompetence which leads to (though is not exclusive to) financial loss or serious reputational damage to the business. This clawback is limited to two years from the date of the payment. No discretion was exercised in the 2023-24 financial year. The Remuneration Policy permits executive directors to hold positions in other companies as non-executive directors and retain their fees. Sarah Jones was appointed to Chelmer Housing Partnership as a Board member and Chair of their Audit and Risk Committee on 29 September 2021. In accordance with Anchor policy, she retains a fee of £12,000 per year for this position. Other executives who have non-executive positions do not receive a fee for this. The committee has considered the experience of all
Meetings attended
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Nicola Bruce Richard Petty
Denise Peart (from 5 May 2023) 4/4 The Nominations Committee is responsible for monitoring the structure and composition of the Board, ensuring that appropriate succession planning takes place, leading the process for nominations and appointments to the Board and for ensuring that effective processes are in place to evaluate the on-going effectiveness of the Board and its members. Nominations Committee activities for the financial year 2023-24 During the year, the committee reviewed the balance of skills and experience on the Board, using a skills matrix. This was used to inform the recruitment and succession planning for 2024-25 when Peter Hay comes to the end of his term of office and steps down. In January 2024, the committee reviewed and remained supportive of the Diversity Policy and targets which were Anchor is committed to achieving and maintaining a diverse Board and executive team membership. The Nominations Committee of the Board is responsible for establishing and overseeing the implementation of an action plan to achieve this aim, which may include the setting of specific diversity targets. set by the Board in November 2021: Board and Executive Diversity Policy Through executive and non-executive succession planning, Anchor commits to maintaining its Board diversity by ensuring that at least half of all Board and Executive Committee roles are filled by members of minority groups* from 1 April 2022 onwards. *For this purpose, the term ‘minority group’ shall include women, members of the LGBTQ+ community, individuals of Black, Asian, Mixed or ethnicities other than White British and individuals who identify as having a physical or mental disability or impairment. The committee set out proposals and then oversaw completion of an internal Board performance review in the early part of 2024. Details of the process and outcomes from the review can be found earlier in this report. The responsibilities of key governance personnel (Chair of the Board, Senior Independent Director, Board Member and Chief Executive) are kept under review by the committee. Copies of their role descriptions can be made available on request to the Company Secretary AHGCoSec@anchor.org.uk. Prior to taking on any new external positions, Board members must discuss and agree this with the Chair of the Board, confirming that they will continue to have sufficient time to dedicate to their Anchor duties.
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