Annual report and accounts 2023 - Flipbook - Page 101
Strategic Report
Corporate Governance
Accounts
Details of the entitlement accruing to the director who is a deferred member of the defined benefit section are detailed in the table below:
R.A. White
*
Accrued pension at
29 January 2023
£000
Normal retirement age
92
63*
The normal retirement age specified in the 2008 Scheme rules for R.A. White is age 63, however he is also entitled under the 2008 Scheme rules to retire at age 60 without an actuarial reduction to his
pension benefits and without any consent required.
Early retirement can be taken at age 55 subject to Trustee consent. The accrued pension would be reduced relative to age 60 to take account of its early payment.
R.A. White ceased his accrual under the defined benefit plan on 5 April 2011. Under the terms of his service contract, R.A. White is entitled to revaluation of his deferred
benefits in line with RPI until his normal retirement date. The rules of the 2008 Scheme provide for revaluation increases in deferment in line with CPI. R.A. White elected for
Fixed Protection 2012 to protect his benefits accrued under the 2008 Scheme. To enable R.A. White to continue to benefit from Fixed Protection 2012, his deferred benefits
were re-valued in line with CPI and, to the extent that RPI exceeds CPI in any year, a corresponding additional contribution is paid to R.A. White in cash. In addition, R.A. White
will continue to be entitled to receive life assurance benefits as if he were in pensionable service under the 2008 Scheme until his normal retirement date notwithstanding the
termination of his employment with the Company, but only in circumstances where he is a “good leaver”.
Dependants of the executive directors are eligible for dependants’ pensions and the payment of a lump sum in the event of death in service. Where the 2008 Scheme
provides a pension on a defined benefit basis, final pensionable salary is used to determine the director’s pension entitlement. Where benefits are provided on a defined
contribution basis, the benefits depend on the director’s accumulated fund. Lump sum life assurance cover is provided at five or eight times pensionable salary dependent
upon the date of joining the 2008 Scheme.
No contributions were paid to the defined contribution section of the 2008 Scheme or the A.G. Barr Retirement Plan during the years ended 29 January 2023 or 30 January 2022.
All directors have elected to receive Company pension contributions in the form of a cash allowance. R.A. White, S. Lorimer and J.D. Kemp receive a cash allowance equal to
their contractual pension provision of 24% of salary.
Payments to past directors – audited information
There were no payments made to past directors during the year in respect of services provided to the Company as a director.
Payments for loss of office – audited information
No payments for loss of office were made during the year.
Statement of directors’ shareholding and share interests – audited information
The Remuneration Committee updated its share ownership guidelines applicable from 2020/21 and the CEO and other executive directors are required to build a shareholding
equal to 200% and 150% of gross basic salary respectively. Until this guideline is met, executive directors are required to retain all vested shares from the LTIP and half of any
bonus pay-out after tax to purchase shares in the Company. The full policy is disclosed in the Remuneration Policy approved by shareholders at the 2020 AGM.
For the purposes of assessing the extent to which the share ownership guidelines have been met by the executive directors, the following shares are included: wholly owned
shares (including those owned by a director’s spouse), LTIP shares that are in the holding period, and unvested deferred bonus shares provided there are no further performance
conditions. At the year end, R.A. White and J.D. Kemp met the respective 200% and 150% of gross basic salary requirement applicable for the year ended 29 January 2023,
with shareholdings equal to 411% and 328% of gross basic salary as at 29 January 2023 respectively. S. Lorimer was appointed to the Board on 5 January 2015 and is currently
required to build up a shareholding equal to 150% of his gross basic salary. S. Lorimer’s shareholding was equal to 111% of gross basic salary as at 29 January 2023. In accordance
with the Remuneration Policy, S. Lorimer is required to retain all net shares (after tax) acquired from the exercise of LTIP awards and half of his net bonus pay-out (after tax) to
purchase shares in the Company; the latter requirement will be net of the 20% of S Lorimer’s bonus which will be deferred into shares for two years referred to above.
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