UNBOUNCE - EXAMPLE PAGE-REPORT-ENTERPRISE DOCUMENT-KINGSPAN - Flipbook - Page 90
b. The introduction of post-cessation
Since our remuneration policy was first
shareholding guidelines for all new
approved in 2019, we have continued to
executive directors;
engage extensively with shareholders and
to review best practice. This feedback
c. Pension contributions for new
has played a key role in the design of our
executive directors in line
remuneration framework, including the
with the workforce rate in the
following changes previously made and
relevant market;
detailed in our Annual Reports in 2019
d. A reduction in pension
and 2020:
contributions for incumbent
executive directors to 10% of base
a. The inclusion of a two-year post
salary by the end of 2024;
vesting holding period under the LTIP;
e. The introduction of non-financial
measures into both the annual
bonus and long-term incentive
plans.
We will be formally including
the above changes into the
new policy. We set out below a
detailed summary of the changes
to current policy which will be
proposed for shareholder approval
at the 2022 AGM.
Element of pay
Current Policy
Proposed Policy
Rationale
Base salary
Base salaries are reviewed annually by the Remuneration
Committee in the last quarter of each year. Increases will
generally be in line with increases across the Group, but
may be higher or lower in certain circumstances to reflect
performance, changes in remit, roles and responsibilities,
or to allow newly appointed executives to move progressively
towards market norms.
No change to
current policy
No prescribed
maximum.
Benefits
In addition to their base salaries, executive directors’ benefits
include, but are not limited to, life and health insurance and
the use by the executive directors of company cars (or a
taxable car allowance) and relocation or similar allowances
on recruitment, each in line with typical market practice.
No change to
current policy
No prescribed
maximum.
Pensions
Kingspan operates a defined contribution pension scheme for
executive directors. Pension contributions are calculated on
base salary only.
No change to
current policy
10% from end
of 2024.
No change to
current policy
Drives focus on
profitability,
while also
including a
customer lens.
Incumbent executive directors’ pensions will be reduced
to 10% of salary by the end of 2024. Newly appointed
executive directors will be capped at the rate applicable
in the relevant market.
Alternatively, Kingspan may pay a cash amount subject
to all applicable employee and employer payroll taxes and
social security.
Annual
performance
bonus
Executive directors receive an annual performance related
bonus based on the attainment of financial and non-financial
targets set prior to the start of each year.
Bonuses are paid on a sliding scale if the targets are met.
Maximum bonus is only achieved if ambitious incremental
growth targets are achieved.
No more than 100% of salary can be delivered in cash through
the bonus plan. Any performance related bonus achieved in
excess of the cash amount is satisfied by the grant of share
awards, which are deferred for two years.
The committee has discretion to adjust formulaic bonus
outcomes in line with the Corporate Governance Code.
86 - 87
150% of base
salary.
(Threshold
payment 0%
of salary).
