Annual report and accounts 2023 - Flipbook - Page 100
A.G. BARR p.l.c. Annual Report and Accounts 2023
Directors’ Remuneration Report continued
Long term incentives for 2023/24
LTIP awards granted in 2023 will be granted with a maximum opportunity of 150% of basic salary for the executive directors. These LTIP awards will be based 60% on
a cumulative EPS performance measure, 30% on a relative TSR performance measure and 10% on an Environmental Sustainability performance measure for 2023/24,
2024/25 and 2025/26.
EPS is a key performance indicator for the Company and shareholders, and remains a highly credible measure of long term performance.
TSR is a relative performance measure which creates strong alignment between the executive directors and shareholders. The TSR performance of the Company will be
compared over the three years to the TSR of the FTSE 250 index (excluding financial services). 20% of the maximum award will vest for achieving threshold performance and
100% of the maximum award will vest for achieving maximum performance. There will be straight-line vesting between the points and no vesting below threshold performance.
The Environmental Sustainability performance measure for the LTIP awards granted in 2023 will be based around the Group’s No Time To Waste environmental sustainability
programme.
The EPS targets are considered commercially sensitive at this time on the basis that they give competitors insight into the Company’s longer term forecasts which the Board
considers confidential. The EPS targets will be disclosed in next year’s Annual Report on Remuneration. Significant uncertainty for UK focused consumer group businesses
remains, therefore setting a three year forward looking cumulative EPS target is challenging. However, the Remuneration Committee is confident that the target range
selected is appropriately stretching and will help the Group drive growth in shareholder earnings. The EPS targets have been set specifically not taking into account the future
impact of the introduction of the Deposit Return Scheme (“DRS”) in Scotland from August 2023. The overall impact of the DRS is very challenging to assess with acceptable
accuracy at this early stage. The Remuneration Committee has resolved to monitor the impact of the DRS post its implementation with the expectation that the EPS targets
set in 2023 will be adjusted during the vesting period to enable the DRS impact to be included in the targets prior to the vesting date.
Total pension entitlements – audited information
Executive directors are all members of the A.G. BARR p.l.c. (2008) Pension and Life Assurance Scheme (the “2008 Scheme”) or the A.G. Barr Retirement Plan. The 2008
Scheme has a defined benefit section and a defined contribution section. The defined benefit section was closed to new entrants from 14 August 2003 and to future accrual
from 1 May 2016. All assets held in the defined contribution section of the 2008 Scheme were transferred to the A.G. Barr Retirement Plan in September 2021. R.A. White is a
deferred member of the defined benefit section of the 2008 Scheme and ceased his accrual on 5 April 2011.
The movement in value of executive director pensions (which exclude any pension contributions made in respect of an individual under the Company’s salary sacrifice
arrangement) are detailed in the following table. This movement is made up of Company pension contributions, changes in the value of defined benefit pension scheme
accrual and pension cash equivalents:
Year ended 29 January 2023
Executive director
R.A. White
Pension cash equivalent
£000
Total
£000
157
112
269
S. Lorimer
–
77
77
J.D. Kemp
–
57
57
157
246
403
Total
98
Defined benefit accrual
£000
