UNBOUNCE - EXAMPLE PAGE-REPORT-ENTERPRISE DOCUMENT-KINGSPAN - Flipbook - Page 85
Rod Laver Arena
Melbourne, Australia
Insulated Panels
KingZip Linea
The committee received feedback from a number of
shareholders concerning Peter Wilson’s retirement, in
particular regarding whether the committee should
have applied clawback provisions to his LTIP awards. The
committee acknowledged and reflected on the various
views expressed, and wrote to shareholders in October
to provide a better understanding of the basis of its
decision. In reviewing the arrangements of his departure,
the committee had considered Mr Wilson’s length of
service; contribution and performance over 39 years; the
established rules of the PSP; the reduction of his bonus
to zero for 2020; and the significant step taken by him in
retiring early (despite no finding of wrongdoing against
him), reflecting a recognition by him that this was the
right time to hand over the Insulation business to new
leadership. The committee believes it took a balanced
decision that reflected the wider factors detailed above.
I hope that the constructive conversations we have had
with shareholders and proxy advisors over the past year
have served to enhance respective understandings of how
we approached key decisions on pay and governance.
2021 business performance and pay outcomes
Kingspan’s business has continued to prosper,
notwithstanding another challenging year of raw
material inflation, supply chain shortages, and rolling
Kingspan Group plc Annual Report & Financial Statements 2021
lockdowns. The past year was one of record performance
for Kingspan across a number of measures, including
shareholder returns, revenue, trading profit and EPS.
TSR and EPS represent key measures in our incentive
plans, and outcomes under the short and long-term
schemes reflect the strength of underlying and
market performance.
The annual performance bonus outcome for the executive
directors is underpinned by exceptional growth across the
divisions and for the Group as a whole. EPS performance
of 305.6 cent (up 48%) resulted in a full pay-out for
the CEO and CFO under that component, as well as
for that component of the divisional MDs’ bonuses. For
both Gilbert McCarthy and Russell Shiels, the divisional
targets were also achieved at maximum. The strength
of financial performance was also aligned with an
improvement in the Group Net Promoter Score (NPS),
which is particularly satisfying following its inclusion
as a metric for the first time last year. In all of these
circumstances, the committee was satisfied that payouts in 2021 reflected underlying Group performance,
individual contributions and wider circumstances.
Similarly, the PSP awards granted in 2019 vested in full
on the back of top quartile TSR growth of 180% and EPS
growth of 66% over the three-year vesting period.
Report of the Remuneration Committee
