Remuneration Committee report continued Annual Report on remuneration continued
Relative importance of the spend on pay The following table sets out the percentage change in distributions to shareholders and colleague remuneration costs.
31 May 2022 £m
31 May 2021
£m % change
207.0
Colleague remuneration costs 1
174.3 18.8% 13.0 10.8%
14.4
Dividends 2
1 Based on the figure shown in Note 7 to the consolidated Financial Statements. 2 B ased on the total cash returned to shareholders in the year ended 31 May 2022 through dividends, as shown in Note 10 to the consolidated Financial Statements (excluding the proposed 2022 final dividend). Percentage increase in the remuneration of the Directors The table below shows the movement in the salary or fees, benefits and annual bonus for each Director between the current and previous financial year compared to the equivalent changes for all colleagues of the Company. The comparator group for salaries and benefits is all colleagues in the UK – there were no benefit policy changes in this time. The comparator group for the bonus is those in the senior management population who also have an annual scheme and excludes those on commission and incentive plans.
% increase in salary
% decrease in benefits
% (decrease)/increase in annual bonus
2021/22
2021/22
2021/22
Director
2020/21
2020/21
2020/21
–
–
–
Chris Stone Adam Palser Tim Kowalski
–
– – – – – – – –
–
3% 8%
(25%) (10%)
(33%) (17%)
1% 1%
303% 341%
– – – – –
– – – – –
– – – – –
Chris Batterham Jonathan Brooks Julie Chakraverty Jennifer Duvalier
– – – – –
– – – – –
Mike Ettling
–
(39.8%)
5.1%
All colleagues
3.1%
–
173.4%
Chief Executive pay compared to pay of UK colleagues The following table shows the ratio between the single total figure of remuneration (STFR) of the Chief Executive for 2021/22 and the lower quartile, median and upper quartile pay of our UK colleagues. The salary and total pay and benefits for the lower quartile, median and upper quartile colleagues are also shown. Total pay ratio
25th percentile pay ratio
50th percentile pay ratio
75th percentile pay ratio
Financial year
Method
2019/20 2020/21
Option B Option B Option C Option C
18:1 27:1 26:1 23:1
12:1 18:1 16:1 14:1
8:1
11:1 12:1 10:1
2020/21 (restated)
2021/22
CEO 25th percentile 50th percentile 75th percentile
Salary (£000)
465
41 46
68 74
94
Total pay and benefits (£000)
1,064
107
CEO pay ratio Option B, which uses gender pay gap data to identify the lower quartile, median and upper quartile colleagues, was chosen to calculate the CEO pay ratio in prior years. However, for the financial year 2021/22 a decision was made to use Option C to ensure that the ratio can be more easily calculated and provide a better representation of pay practice at NCC. We have therefore shown the Option C figures above for the financial year 2021/22 and also restated the figures for 2020/21 under Option C for comparability purposes. Under Option C, we have used the most recent P60 information (for the 2021/22 tax year) to determine the relevant colleague at the 25th, 50th and 75th percentile. As in prior years, we have omitted joiners and leavers from the data to ensure that the data is on a like-for-like basis. This option was chosen in preference to the other possibilities as it uses the most accurate and comprehensive data currently available and provides a fair reflection of the total pay received by colleagues.
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NCC Group plc — Annual report and accounts for the year ended 31 May 2022
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