41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 161
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
OTHER INFORMATION
Implementation of Executive Director Remuneration Policy for 2023
Base salary
As detailed in the Annual Statement on page 133, Executive Directors will each receive a 3.0% salary increase with effect
from 1 January 2023, with implementation of the higher increases set out in last year’s report delayed until a more
appropriate time. This decision acknowledges the cost-of-living pressures facing both colleagues and customers, and means
that salary increases for Richard Smith and Joe Lister will be aligned with those awarded to other senior leaders.
Base salary from
1 January 2022
Base salary from
1 January 2023
Percentage
increase
Richard Smith
£522,500
£538,500
3.0%
Joe Lister
£411,250
£423,588
3.0%
Executive
The average salary increase across the Group in 2023 will be 8.6%, with the available increase in salary budget targeted at
those colleagues most impacted by inflationary pressures, in particular our front-line employees. Unite remains committed
to being an accredited Real Living Wage employer and has implemented the rates set by the Living Wage Foundation (8.1% in
London and 10.1% across the rest of the UK), with tiered salary increases across the rest of the organisation.
Pension
Executive Directors will continue to receive a pension scheme contribution, a cash allowance of equivalent cost to the
company or a combination of both. With effect from 1 January 2023, total employer pension contributions will be further
reduced to an equivalent of up to 11% of salary for both Executive Directors. This represents the final planned reduction
in Executive Director pension contribution levels and brings both the CEO and CFO in line with the offering available to
the wider employee population.
Annual bonus
For 2023, the maximum bonus opportunity for each executive will be 140% of salary, with threshold and target performance
paying 30% and 50% of maximum respectively under each performance measure.
Corporate measures
Weighting
Financial
Adjusted EPS
25.0%
70%
TAR per share
25.0%
Loan to Value (LTV)
20.0%
Non-financial
Customer satisfaction
7.5%
30%
Higher Education reputation
7.5%
Employee engagement
7.5%
GRESB rating
7.5%
The Committee is not proposing any changes to the performance metrics used under the annual bonus for 2023, and
remains satisfied that the current blend of financial and non-financial measures supports the Group’s strategy and
reinforces Unite values.
For both the financial and non-financial elements of the annual bonus, targets have been set to be challenging relative to
the business plan. Reflecting concerns around commercial sensitivity at this time, it is the Committee’s intention to disclose
all targets retrospectively in next year’s Directors’ Remuneration Report. This decision takes into account Unite’s status as
one of only two listed PBSA providers in the UK and the possible insight that prospective disclosure might provide to our
competitors as to our short-term financial and operational strategy.
In line with the Remuneration Policy, 50% of any bonus earned will be satisfied by an allocation of shares in the Company
deferred for two years. Clawback and malus provisions apply to all awards.
LTIP
During 2023, Executive Directors will each receive an award of up to 200% of salary delivered through a combination of the
PSP and ESOS, with vesting dependent on the achievement of three-year performance targets. Actual award levels will be
approved by the Committee closer to the date of grant and will take into account the share price at that time, as compared to
the share price used to determine awards over the last few LTIP cycles.
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