UNBOUNCE - EXAMPLE PAGE-REPORT-ENTERPRISE DOCUMENT-KINGSPAN - Flipbook - Page 87
As such, it has opted to increase potential future
grants under one element of pay – the LTIP – which it
considers the most appropriate means of continuing
to recognise the contribution of executives while
aligning any changes in pay to shareholder interests.
Looking ahead
We are confident that the proposed remuneration
policy will build on the success of the policy approved
in 2019 and continue to serve Kingspan and its
shareholders over the coming four years. We have
continued to integrate our ambitious sustainability
agenda and our customer NPS performance into
our pay arrangements. We remain committed to
ensuring that our remuneration framework drives
superior performance and reflects the evolving
needs of stakeholders. At our 2022 AGM, we hope
that shareholders agree and support both of our
remuneration proposals.
Linda Hickey
Chair of the Remuneration Committee
Fixed
79%
Variable
VARIABLE PAY
Short term vs Long term
31%
Short
Term
In addition, the Shareholder Rights Directive II (SRD
II) was transposed into Irish Law in 2020. Under
the SRD II, Kingspan is required to put an advisory
remuneration policy to shareholders at least once
every four years. A remuneration policy is being
proposed at the 2022 AGM, having previously been
proposed voluntarily in 2019.
2021/2022 Remuneration at a Glance
This section provides a snapshot of remuneration
received by executive directors during 2021 and the
remuneration proposals for the year ahead.
FIXED PAY VS VARIABLE PAY
21%
Corporate Governance
As an Irish listed company, Kingspan reports against
the provisions of the UK Corporate Governance Code
(July 2018) and the Irish Corporate Governance Annex.
Under the Code, the Remuneration Committee is
responsible for determining the policy for executive
director remuneration and setting remuneration for
the chair, executive directors and senior management.
In addition, we review broader workforce remuneration
and the alignment of incentives and rewards with
culture, taking these into account when setting
the policy for executive director remuneration. The
committee has done so and is confident the pay
principles and philosophy set out previously are aligned
with the Company’s approach to pay in general, and
the culture and values of the organisation.
69%
Long
Term
Kingspan Group plc Annual Report & Financial Statements 2021
Salary
With the exception of Russell Shiels, there were no
increases to executive directors’ base salaries in 2021
from the prior year. As outlined in last year’s Annual
Report, the committee carried out a review of Mr
Shiels’ role and responsibilities, and noted that this
had increased significantly in recent years as a result
of recent organic and inorganic expansion particularly
in LATAM. The committee awarded Mr Shiels a 3%
salary increase in 2021, and agreed to grant a further
4% increase over US inflation (6%) in 2022 to reflect
his increased responsibilities. The committee is
satisfied that these changes properly align Mr Shiels’
package with his increased responsibilities and no
further adjustments will be required.
Annual bonus
As provided by the approved remuneration policy, the
maximum annual bonus potential for the executive
directors is 150% of basic salary, which remains
unchanged. The CEO and CFO’s annual bonus is
based on the achievement of Group EPS performance
targets. For Divisional MDs, bonuses are based
on a combination of stretching profit targets for
their respective divisions, plus an element of Group
EPS targets. In addition, in 2021 we introduced an
additional non-financial metric, the Net Promoter
Score (NPS), for the first time.
Report of the Remuneration Committee
