Remuneration Committee summary
The objective of the Remuneration Committee is to establish and maintain formal and transparent procedures for developing our policy on executive remuneration; to set, monitor and report on the remuneration packages of individual Directors and Senior Management; and to review wider workforce remuneration and other policies in accordance with the 2018 UK Corporate Governance Code.
Key activities of the Remuneration Committee in 2022:- Reviewed the Directors’ Remuneration Policy, agreed minor amendments and engaged with major shareholders
- Approved the remuneration arrangements for Jennie Daly on appointment as Chief Executive
- Reviewed base salary levels for Senior Management
- Approved the fee for Robert Noel on becoming Chair of the Board
- Considered wider workforce remuneration arrangements in light of the cost of living crisis
- Ensured a smooth succession and induction process for the Committee Chair
A key part of the Remuneration Committee's role is to ensure that the remuneration of Executive Directors and Senior Management is aligned to the Company's strategic objectives. It is, key that the Company is able to attract and retain leaders who are focused and also appropriately incentivised to deliver the Company's strategic objectives, within a framework that is aligned with the long term interests of the Company's shareholders.
This alignment is achieved through a combination of:- Performance measures for the EIS and PSP aligned with Key Performance Indicators, the Company’s strategic objectives and measures of sustainable performance
- Deferral into shares of a percentage of the EIS
- A two year retention period for vesting PSP Awards
- Share ownership guidelines which require executives to build up holdings of Taylor Wimpey shares, either directly or by retaining vested PSP Awards and deferred EIS amounts
- A post-employment shareholding requirement
- Robust clawback and malus provisions
The above requirements ensure that a significant percentage of the overall remuneration package of our Executive Directors and Senior Management is subject to performance and delivered in shares which must be held long term. With all packages for our Executive Directors substantially geared towards meeting challenging targets set under the EIS and PSP, the Committee believes that the pay and benefits of its Executive Directors and Senior Management adequately balance reward and risk.
In line with best practice, the Committee structures incentives for Executive Directors and Senior Management in a way that ensures they will not raise ESG risks by inadvertently motivating irresponsible behaviour. More generally, the Committee under its Terms of Reference may, where it considers appropriate, take ESG matters into account when considering the overall remuneration structure and as part of its overall discretion.