41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 154
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THE UNITE GROUP PLC | Annual Report and Financial Statements 2022
REMUNERATION COMMITTEE continued
Incentive outcomes for the year ended 31 December 2022 (audited)
Annual bonus in respect of 2022 performance
The maximum bonus opportunity for each Executive Director in 2022 was 140% of base salary, with Threshold and On-target
performance paying 30% and 50% of maximum respectively under each performance measure. The 2022 annual bonus
was based on an additive combination of financial (weighted 70%) and non-financial (30%) metrics, with a new measure,
employee engagement, added to coincide with the rollout of a new People strategy across the Group, and to reflect the
increasing importance of engaging the workforce to help deliver against an ambitious strategy. Further details, including the
targets set and performance against each of the metrics, are provided in the tables below:
Threshold
On-target
Maximum
50% of
max
100% of
max
Actual
Outcome
(% of max)
Measure
Weight
30% of
max
Financial
Adjusted EPS
25.0%
40.5p
42.5p
44.5p
40.9p
34%
(70%)
TAR per share
25.0%
75.2p
83.6p
96.1p
71.2p
0%
Loan to Value
20.0%
35.0%
34.1%
32.0%
31.0%
100%
Non-financial
Customer satisfaction
7.5%
36
37
38
38
100%
(30%)
University reputation
7.5%
21
22
23
7
0%
GRESB rating
7.5%
85
86
88
84
0%
Employee engagement
7.5%
73
75
77
65
0%
Overall outcome
(% of maximum)
Overall outcome
(% of salary)
Overall outcome
(£)
Richard Smith
36.0%
50.4%
£263,340
Joe Lister
36.0%
50.4%
£207,270
Executive
The Committee notes that Unite’s GRESB rating was just below the Threshold target set for the financial year despite ranking
2nd out of 9 companies in the European Listed Residential Property peer-group and with positive progress made in a
number of areas. In finalising the outcome under this element, the Committee considered the findings of an independent
review of the GRESB rating by Longevity Partners which illustrated that the impact of the return to near pre-pandemic
occupancy levels on energy consumption had more than offset the gains made elsewhere in the GRESB assessment. With
input from the Sustainability Committee, the Committee considered whether an adjustment to targets was justified in this
instance but concluded, on balance, that the original target range should stand and that there should be no payout under
this element.
There will likewise be no payout under either the University reputation or the employee engagement metrics, with results
coming in below the Threshold targets set at the start of the financial year. The Committee reviewed the reasons for the
movement in scores, and noted that the implementation of a new operating model and above average employee turnover
had, amongst other factors, contributed to these outcomes. The Committee is satisfied that the overall bonus outcome for
2022 reflects these challenges and is confident in the executive team’s plans for improvement going forward.
Prior to finalising the annual bonus outcome, the Committee received a report from Professor Sir Steve Smith, Chair of the
Health and Safety Committee, detailing the Group’s 2022 operational incident and fire safety performance, providing an
update on the cladding remediation programme and associated safety metrics, as well as details on changes to the Safe and
Secure team and the launch of the Group’s Support to Stay Framework. The Committee’s conclusion aligned with that in the
report, namely that the executive team has continued to work proactively to address any challenges faced and to ensure that
health and safety remains Unite’s number one priority.
Having taken the above into account, the Committee is satisfied that the overall bonus outcome of 50.4% of salary (cf. a
maximum of 140% of salary) in respect of 2022 is appropriate. In line with the new policy, 50% of the annual bonuses earned
by Executive Directors will be satisfied in Unite shares, deferred for 2 years.
Vesting of deferred bonus shares granted in respect of the 2019 annual bonus
In accordance with the Remuneration Policy at the time, Richard Smith and Joe Lister were each awarded shares, deferred for
2 years, in respect of the portion of their bonus earned for the 2019 financial year in excess of 100% of salary. The mandatory
2-year deferral period for these awards ended on 27 February 2022. The value of these deferred bonuses was captured in
the 2019 single figure of remuneration.
