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Remuneration Committee


Directors’ Remuneration Report
Committee Chairman’s Letter
Dear shareholder,
On behalf of your Board, I am pleased to present the Directors’ Remuneration report for the period ended 31 March 2018.
2017 Remuneration Policy
At the AGM last year we proposed a new three year Remuneration Policy and this received strong shareholder approval, with 98.8% of votes cast in favour.
Performance outcome for 2017/18 
The Committee reviewed the CEO’s and CFO’s performance over the financial period and assessed the extent to which their annual bonus targets had been achieved. Following a difficult trading period in 2016/17 the Group delivered a strong performance in 2017/18 with revenue and Trading profit up 3.6% and 5.1%, both ahead of market expectation. Net debt, a key metric for the Group, reduced significantly from £523.2m to £496.4m. In addition, a significant proportion of the executive directors’ strategic and personal objectives were also achieved. Following the review the Committee assessed that, based on performance over the year, a bonus of 59.5% of opportunity for Mr Darby and of 59.0% of opportunity for Mr Murray was appropriate. However, for reasons of affordability, it was agreed between the Committee and the executive directors, that the bonus payments to both Mr Darby and Mr Murray would be capped at 35% of opportunity. Accordingly, a bonus of £367,500 was approved for Mr Darby and a bonus of £152,954 was approved for Mr Murray. Full details of the assessment are set out on pages 48 to 50 of the Directors' Remuneration report.

Following the approval of the 2017 Remuneration Policy, one third of any annual bonus payment to executive directors will be made in the form of shares deferred for a three year period, details of the Deferred Bonus Plan are set out on page 51 of the Directors' Remuneration report.

The Committee assessed the performance conditions for the 2015 LTIP award and, following this assessment, the award has lapsed in full.
Arrangements for the coming period
The targets for the annual bonus and LTIP awards for 2018/19 are aligned with the Group’s strategic priorities and further details of the measures for 2018/19 are provided on page 51 of the Directors Remuneration report.

The Committee approved a salary increase of 2.0% for colleagues not involved in collective bargaining for 2018/19 and the same salary increase was approved for the CEO and CFO.  Gavin Darby has again elected not to take a salary increase and therefore his salary remains unchanged since his appointment in 2013.

I look forward to your continuing support.
Jennifer Laing
Remuneration Committee Chairman
15 May 2018

Directors' Remuneration Report 2017/18

A copy of our current Directors' Remuneration Policy, which was approved at the AGM on 20 July 2017 and took effect from that date is available by following the link below.

2017 Directors Remuneration Policy

The full text of annual report 2017/18 can be downloaded from the results centre