'Our remuneration framework is aligned with the Group’s strategic objectives, by rewarding the creation of sustainable value, with particular focus on our customers, shareholders, people and values'.
John Daly, Remuneration Committee Chairman
roles and responsibilities
The Remuneration Committee is responsible for determining all elements of the remuneration of the executive directors, other members of the Group Executive Committee and the chairman of the board.
It also agrees, with the board, the framework and policy for the remuneration of other senior managers of the Group and reviews and recommends to the board the remuneration of the company secretary. From 2019, to comply with the new UK Corporate Governance Code, the committee will also be responsible for setting the remuneration of the company secretary.
In determining the executive remuneration policy, the committee takes into account the Group’s need to attract, retain and incentivise executive talent, a variety of legal and regulatory requirements, the relevant provisions of the UK Corporate Governance Code and the pay policies and practices throughout the Group.
The committee also determines the policy on the duration, notice period and termination payments under the members of the Group Executive Committee’ contracts, with a view to recognising service to the company whilst ensuring that failure is not rewarded and that the need to mitigate loss is recognised.
The committee approves the design and determines the measures and formulae for performance-related pay schemes operated by the company. It approves the eligibility of executive directors and other Group Executive Committee members for annual bonuses and awards under long-term incentive plans and the methods for assessing performance against the objectives of those plans. No individual determines their own remuneration.