Annual report and accounts 2023 - Flipbook - Page 105
Strategic Report
Corporate Governance
Accounts
CEO Pay Ratio
The table below sets out the ratio of the A.G. BARR p.l.c. CEO single total figure of remuneration for 2022 (as detailed on page 92) as a ratio of the equivalent single figure for
the lower quartile, median and upper quartile UK employee (calculated on a full-time equivalent basis).
Total pay ratio
Method
25th Percentile
Median Percentile
Year ended 29 January 2023
B
56:1
45:1
75th Percentile
32:1
Year ended 30 January 2022
B
42:1
34:1
23:1
Year ended 24 January 2021
B
25:1
21:1
16:1
Year ended 25 January 2020
B
27:1
22:1
16:1
As is permitted by the legislation, and consistent with last year, we have calculated the ratio using Option B whereby representative employees are identified using the latest
A.G. BARR p.l.c. gender pay gap statistics as this was the most pragmatic approach and believed to produce representative results. A number of employees around the 25th,
50th and 75th percentile were identified and their total pay and benefits calculated to ensure that the most representative employees were selected. Employee pay for the
representative employees was calculated on the same basis as the CEO and so includes items such as short-term and long-term incentive payments relating to the financial
year ending 29 January 2023. The calculations have assumed that a full-time equivalent week consists of 37.5 working hours.
The regulations require the total pay and benefits and the salary component of total pay and benefits to be set out as follows:
CEO remuneration
Base salary
Total pay and benefits
£503,000
£1,781,000
25th percentile employee
£21,349
£31,748
Median percentile employee
£32,008
£39,785
75th percentile employee
£46,423
£56,521
A.G. BARR p.l.c.’s principles for pay setting and progression in our wider workforce are the same as for our executives – total reward being sufficiently competitive to attract
and retain high calibre individuals without over-paying and providing the opportunity for individual development and career progression. The pay ratios reflect how remuneration
arrangements differ as accountability increases for more senior roles within the organisation and in particular the ratios reflect the weighting towards long-term value creation
and alignment with shareholder interests for the CEO. We are satisfied that the median pay ratio voluntarily reported this year is consistent with our wider pay, reward and
progression policies for employees. The median reference employee has the opportunity for annual pay increases, annual performance payments and career progression
and development opportunities.
Relative importance of spend on pay
The following table sets out the percentage change in dividends and the overall expenditure on pay (as a whole across the organisation).
Year ended 30 January
2022 £000
Year ended 29 January
2023 £000
Dividends
13,365
13,922
4.2%
Overall expenditure on pay
45,400
50,200
10.6%
Percentage change
% change
103
