Strategic Report
Governance Report
Financial Statements
Other Information
Annual variable pay outcomes for financial year ended 30 June 2024 FY24 bonus outcomes for Executive Directors continued to be determined by performance against a balanced scorecard of performance measures. The measures and target range sliding scales were approved by the Remuneration Committee at the beginning of the FY24 reporting period with the intention of incentivising the delivery of the Group’s strategic priorities and achieving an appropriate pay-out to Executive Directors relative to their performance against stretch targets. Under the existing Directors’ Remuneration Policy, a maximum bonus opportunity of 150% of base salary applies to each Executive Director. The Chief Financial Officer is eligible for a time pro-rated award in reflection of her 1 August 2023 appointment date. FY24 annual bonus performance targets For the financial year ended 30 June 2024, the three existing financial measures of profit (£m), margin (%) and net flows were expanded upon to include revenue, gross flows and cost income ratio as a means to both incentivise and assess progress towards the Group’s dual financial aims of market leading organic growth and top quartile profitability. These measures were grouped into the four financial categories of revenues, flows, profitability and margin & operating efficiency, each with a category weighting of 15% of overall annual bonus opportunity, as follows: • Revenues, measured by gross revenues aligned to budget (15%); • Flows, comprised of net organic growth in FUM as a % of opening FUM (“Net Flows”) (7.5%) and gross organic flows aligned to budget (“Gross Flows) (7.5%);
• Profitability measured by underlying profit before tax (“Underlying PBT”) aligned to budget (15%); • Margin & operating efficiency measured by underlying profit before tax margin (“Underlying PBT Margin”) (7.5%) and cost/ income ratio (7.5%), Once again, non-financial objectives within the four categories of strategy, client, people and risk made up the remaining 40% of the scorecard opportunity. Sliding scales with threshold, target and maximum outturn positions were established for all financial measures using budgeted or other target values, with account being taken of market consensus expectation and sector performance. Non-financial objectives were set with a focus on strategy, client, risk and people deliverables, incorporating objective, quantifiable targets in areas such as investment performance and DE&I.
Notes to the total remuneration table
1 Taxable benefits relate to the provision of medical insurance and company car (electric vehicle) benefit. 2 The annual bonus amounts shown reflect both the cash component (66.7% of total annual bonus value) and the deferred share option component (33.3% of total annual bonus value). FY23 award values reflect the period of Executive Director service. Ongoing tenure and malus and clawback provisions apply to deferred share awards. 3 Reported 2024 LTIP value for Andrew Shepherd reflects the value of 3,309 nil price share options from the assessment of 2021 ED LTIP where the performance period ended at 30 June 2024. Pricing of this award reflects the three month average BRK share price for the period April to June 2024 of £19.407. 4 No Executive Director participated in the 2021 Sharesave plan that matured in FY2024 and no gains were therefore realised. Values for FY2023 reflect the gain of the Sharesave contract calculated related to the discount price for the 2020 Sharesave contract that matured in the FY23 financial year. 5 Payment relates to Lynsey Cross stepping down from Executive Director responsibilities in FY23 as detailed in FY23 annual report. 6 The value of FY24 salary reported for Andrew Shepherd reflects him taking a total of 13 days of unpaid leave across three months in FY24. A working contribution was still maintained during these partial absences and no adjustment was made to bonus eligibility. 7 Andrea Montague was appointed as an Executive Director on 1 August 2023. 8 Ben Thorpe and Lynsey Cross both resigned as Executive Directors on 19 January 2023. 9 Maarten Slendebroek was appointed Chair on 27 November 2023, pending SMF9 regulatory approval and received an annual Chair fee of £220,000. 10 Richard Price was appointed Acting Chair in February 2023 and his FY23 fees reflect a blend of Acting Chair fee and Senior Independent Director’s fees for FY23. His FY24 fees reflect his resignation from the Acting Chair role in March 2024 following confirmation of Maarten Slendebroek’s regulatory approval as SMF9. 11 Robert Burgess’ FY24 fees reflect his appointment as Senior Independent Director from 1 September 2023. 12 Dagmar Kershaw’s FY24 fees reflect the payment of the Investment Committee attendance fee to her from 1 July 2023. 13 James Rawlinson’s FY24 fees reflect a back payment of £2,000 for Audit Chair fees for FY23 following his SMF11 regulatory approval. He was appointed as a Non-Executive Director on 2 March 2023. 14 Alan Carruthers resigned as Chair on 7 February 2023.
Brooks Macdonald Group plc Annual Report and Accounts 2024
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