This is because our implementation of Option C uses more recent pay data to identify the lower quartile, median and upper quartile colleagues than would be used under Option B. In addition, Option C uses an analysis of total pay in a full year to identify the relevant colleagues, whereas Option B uses a “snapshot” of monthly pay taken in April. Due to the timing of bonus payments at NCC, finding the median colleague based on monthly pay in April does not always lead to a good proxy for the median colleague on a total pay basis. The CEO pay ratio has decreased compared to the prior year. This decrease is not attributable to a change in remuneration for the CEO, pay and benefits for colleagues as a whole, or the composition of our workforce. Instead, the change in CEO pay ratio is mainly attributable to the decrease in annual bonus paid to the CEO, and the increase in total pay for the median colleague. As CEO pay places greater weight on “at risk” variable remuneration, Company performance has a greater impact on CEO pay than on pay for the median colleague, which leads to greater year-on-year variations. The pay ratio is consistent with the pay, reward and progression policies currently in place at NCC. Performance graph and table The following graph shows the total shareholder return, with dividends reinvested, from 31 May 2012 against the corresponding changes in a hypothetical holding in shares in both the FTSE All Share and FTSE 250 Indices. The FTSE All Share and FTSE 250 Indices represent broad equity indices. The Company is a constituent member of the FTSE All Share Index and the Committee has adopted the FTSE 250 Index for part of its LTIP performance measure. Both indices give a market capitalisation-based perspective. During the year, the Company’s share price varied between £1.674 and £3.35 and ended the financial year at £2.15. Ten year historical TSR performance is the growth in the value of a hypothetical £100 holding over ten years. It has been calculated for NCC Group plc, and the FTSE All Share and FTSE 250 Indices (excluding investment trusts) based on spot values.
400
350
300
250
£237
£229
200
£168
£172
£169
£145
£127
150
£100
£137
£133
100
£88
50
0
2012
2013
2014
2015
2016
Year ended 31 May 2017
2018
2019
2020
2021
2022
NCC Group plc
FTSE All Share Index
FTSE 250 (excluding investment trusts)
The share price was £2.95 on 1 June 2021 and £2.15 on 31 May 2022. The table below shows the total remuneration for the Chief Executive over the same ten year period, including share awards valued at the date they vested.
Total remuneration £000
Long-term incentives % of maximum 4
Annual bonus % of maximum 3
Year ended 1, 2
31 May 2022 31 May 2021 31 May 2020 31 May 2019 31 May 2018 1 31 May 2018 2 31 May 2017 31 May 2016 31 May 2015 31 May 2014 31 May 2013
1,064 1,110
60 92 23 48 32 32
59 40 52
861 679
– – – –
292 1 257 2
610
–
1,091
70 73 73
20 15 50 63
993
1,089 1,118
– 5
1 Adam Palser was appointed on 1 December 2017. The total remuneration figure above is in respect of the period from 1 December 2017 to 31 May 2018. 2 D uring the year ended 31 May 2018, Brian Tenner acted as Interim Chief Executive Officer for the period 1 June 2017 to 30 November 2017. The total remuneration figure above is the total remuneration received in relation to that six month period. 3 Note that this shows the annual bonus payments as a percentage of the maximum opportunity. 4 This shows the LTIP vesting level as a percentage of the maximum opportunity. 5 In 2012/13 the incumbent CEO waived his right to a bonus, which would have been equal to 32% of salary. This was equivalent to 50% of the maximum bonus opportunity.
NCC Group plc — Annual report and accounts for the year ended 31 May 2022
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