41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 148
THE UNITE GROUP PLC | Annual Report and Financial Statements 2022
REMUNERATION COMMITTEE continued
Pay for performance scenarios
The charts below provide an illustration of the potential future reward opportunities for the Executive Directors, and the
potential split between the different elements of remuneration under four different performance scenarios: “Minimum”,
“On-target”, “Maximum” and “Maximum including the impact of a 50% share price appreciation on LTIP awards”.
Potential reward opportunities are based on Unite’s Remuneration Policy, applied to the base salaries effective 1 January
2023. Pension contributions reflect the agreed reduction to a maximum of 11% of salary effective 1 January 2023. The annual
bonus and LTIP are based on the maximum opportunities set out under the Remuneration Policy, being 140% of salary
under the annual bonus and a 2023 LTIP grant of 200% of salary. Note that the LTIP awards granted in a year do not normally
vest until the third anniversary of the date of grant, and the projected value is based on the face value at award rather than
vesting (i.e. the scenarios exclude the impact of any share price movement over the period). The exception to this is the
last scenario which, in line with the requirements of the UK Corporate Governance Code, illustrates the maximum outcome
assuming 50% share price appreciation for the purpose of LTIP value.
£2,981
3,000
£2,443
2,500
£2,351
54.2%
2,000
Remuneration (£000)
146
£1,927
44.1%
54.1%
1,500
44.0%
£1,259
21.4%
1,000
30.8%
£613
£995
25.3%
21.3%
29.9%
500
100.0%
48.7%
25.1%
20.6%
Minimum
On-target
Maximum
Maximum + 50%
share price inc.
for LTIP
30.8%
25.2%
48.9%
25.3%
20.7%
On-target
Maximum
Maximum + 50%
share price inc.
for LTIP
£487
29.8%
100.0%
Minimum
0
Richard Smith
Salary, pension, benefits
Annual bonus
Joe Lister
LTIP
The “minimum” scenario reflects base salary, pension and benefits (i.e. fixed remuneration) which are the only elements of
the Executive’s remuneration packages not linked to performance.
The “on-target” scenario reflects fixed remuneration as above, plus bonus payout of 70% of salary and LTIP threshold vesting
at 25% of maximum award (50% of salary).
The “maximum” scenario is shown on two bases: excluding and including the impact of share price appreciation on the
value of LTIP outcomes. In both cases, the scenario includes fixed remuneration and full payout of all incentives (140% of
salary under the annual bonus and 200% of salary under the LTIP), with the final scenario also including the impact of a 50%
increase in Unite’s share price on the value of the LTIP (in effect valuing this element of pay at 300% of salary).
Salary
Benefits
(based on FY22)
Pension
2023 maximum
annual bonus
2023 LTIP award
face value
CEO
£538,175
£16,123
11% of salary
140% of salary
200% of salary
CFO
£423,588
£16,854
11% of salary
140% of salary
200% of salary
