Liontrust Responsible Capitalism Report 2021 - Flipbook - Page 22
RESPONSIBLE CAPITALISM AND REMUNERATION
A number of Liontrust individuals and/or teams have specific ESGrelated components related to their roles that form part of their
appraisal and are linked directly to pay (LTIP / bonus). These include:
CEO and CFO/COO
As part of their remuneration scorecard for 2022/23, Liontrust’s
CEO and CFO/COO have a 30% allocation to ESG components.
Within this 30% allocation:
• 10% focuses on furthering ESG integration into Liontrust’s
investment teams’ processes as required
• 10% focuses on having a more joined up/connected approach to
increasing the diversity and inclusiveness of Liontrust as a business
• 10% focuses on aligning executive pay and pension allocations
across Liontrust’s workforce.
Pay: Linked to exposures and by department heads
As part of their remit and oversight, Liontrust’s department heads
take into consideration a number of areas in which Liontrust has
exposure, including attracting and retaining talent, adherence to
regulatory requirements, diversity and inclusion, cyber and data
security, and health and safety. These factors contribute, overall,
to Liontrust’s culture and the efficient running of its business. Also,
specific departments have these components as part of their remit,
meaning that there may be closer links between the component and
pay. These include:
Exposure / Area
Team
Headed by
Duties and link to pay
Attraction and
retention of talent
Human Resources
department
Head of Human
Resources
Leads the Group’s efforts in terms of diversity and inclusion, training and mentoring,
and health and safety. The team, therefore, has closer ties to pay and bonus for
these elements than is the case for other teams.
Cyber and
data security
IT department
Chief Technology
Officer
In addition to providing Liontrust with day-to-day IT support, this team oversees,
with the help of the Group’s virtual Chief Information Security Officer, the Group’s
technology and the safekeeping of its tech systems, platforms, and sensitive data.
It is important to note that the IT team and CTO are only part of the solution for
preventing cyber attacks and data loss. All Liontrust employees have responsibility for
protecting data, noticing and reporting anything unusual or irregular.
Adherence
to regulatory
requirements
Compliance team
Chief Compliance
Officer and Head
of Legal
Both of these teams have responsibilities around ensuring that the Group adheres to
all regulatory requirements in the jurisdictions in which the Group operates. These
aspects are linked to pay for the teams and for their department heads.
Sustainable
Investment
Sustainable
Investment team
Head of Sustainable
Investment
This team manages approximately one third of Liontrust’s AuMA. The team is
responsible for adhering to its Sustainable Future investment process and reporting
SFDR and other requirements and labels. The Head of Sustainable Investment and
team members are remunerated on the basis of their individual responsibilities with
regard to the investments that the team makes. Team members have both financial
and ESG integration components to their roles and these are linked to pay.
ESG / sustainability
efforts
Responsible
Capitalism team
Head of Responsible
Capitalism
This team proposes Responsible Capitalism related strategy, provides ESG
information to investment teams, undertakes proxy voting administration, manages
a number of sustainability related projects for the Group, leads on the Group’s net
zero commitment, supports the Human Resources team on people programmes, and
produces ESG/sustainably related annual reporting. These aspects of service to the
Group are linked directly to the team’s pay.
Understanding
(and putting in
place mitigants
for) the Group’s key
exposures
Risk team
Chief Risk Officer
This team measures, monitors, and reports on the Group’s key exposures, among
other things. Several of these key exposures are ESG related. The team also monitors
the investment teams’ adherence to their investment processes, in which there may
be ESG-related components.
All Liontrust
employees
Legal team
22 - Responsible Capitalism Report 2022