Remuneration Committee report continued Directors’ Remuneration Policy continued
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. Based on a range of stretching targets measured over one year. This might include, but not exclusively, profit measures and other strategic objectives such as cash management, brand development, customer satisfaction and retention, business unit sales growth and colleague engagement. Performance below the minimum performance target results in no bonus. No more than 20% of the maximum opportunity is paid for achievement of the threshold performance targets. Payments rise from the threshold payment to 100% of the maximum opportunity for levels of performance between the threshold and maximum targets. The rate of the rise and the various payment targets are determined annually by the Committee. The Committee has discretion to reduce the formulaic bonus outcome if individual performance is determined to be unsatisfactory or if the individual is the subject of disciplinary action. At least 35% of any bonus payment is normally deferred into shares or nominal cost share options which vest after a two year period. Dividend equivalents are paid on vesting share options. Malus and clawback provisions are in place for both cash and deferred elements.
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%). 125% of base salary. A lower maximum of 100% of base salary was operated in 2021/22.
competitive benefit, which attracts high calibre executives and allows flexible retirement planning to suit individual needs
Annual bonus To drive and reward sustainable business performance
With effect from 2022/23, the bonus
opportunity for the CEO and CFO was
increased to 125% of salary.
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NCC Group plc — Annual report and accounts for the year ended 31 May 2022
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