47153 AG Barr Annual Report 2025 AW4 SQ WEB - Flipbook - Page 88
A.G. BARR p.l.c. Annual Report and Accounts 2025
D I R E C TO R S ’
R E M U N E R ATI O N R E P O R T
CO N TI N U ED
Pay for performance in 2024/25
As we reflect on the past financial year, we
remain committed to ongoing dialogue with
shareholders regarding executive remuneration,
ensuring that decisions are aligned with the
long-term interests of the Company and its
stakeholders. The Committee remains committed
to a responsible approach to executive pay and
believes that variable pay should only be earned
for achievement against stretching targets.
Achievement against annual bonus
targets – above on target payout in
respect of Adjusted PBT*
The executive directors were set a stretching
Adjusted PBT* target, which accounts for 80% of
bonus opportunity for each executive director.
The Adjusted PBT* target range of £53m to £60m
reflected the ambitions for growth of the business
and the executive directors delivered strong
growth in revenue and achieved Adjusted PBT* of
£58.5m. On that basis, the Committee concluded
that the executive directors will receive 72.2% of
the Adjusted PBT* portion of the bonus.
Each of the executive directors were set stretching
individual strategic objectives tailored to their
role and responsibilities, which account for 20%
of bonus opportunity for each director. The
Committee reviewed each of the directors’
strategic objectives in turn, to fully understand
the extent to which each strategic objective had
been achieved. The Committee was satisfied
that strong progress had been achieved by
each of the executive directors towards their
strategic objectives and agreed to award the
individual directors between 87% and 90% of the
maximum of 20% available for this part of the
bonus, reflective of individual performance.
As a result, the bonuses awarded to individual
directors ranged from 94% to 95% of the
maximum bonus available of 125% of salary.
Further details of bonus awards can be found
on pages 92 to 94.
86
Achievement against LTIP targets –
2022 LTIP awards vest in full
The 2022 LTIP awards were assessed cumulatively
over the following three years based on stretching
targets set across three performance measures:
Earnings Per Share (‘EPS’), Total Shareholder
Return (‘TSR’) and environmental sustainability,
with relative proportions of 60%, 30% and 10%.
The cumulative EPS over the three years ended
25 January 2025 was 103.31p, compared to the
EPS target range set in April 2022 of 86.6p to
95.7p. As a result, subject to the LTIP rules, the
EPS element of the LTIP will vest in full at 60%
in April 2025.
In respect of TSR, the Company delivered a TSR
over the assessed period which was above the
upper quartile performance of the agreed peer
set of companies in the FTSE 250. As a result,
subject to the LTIP rules, the TSR element of the
LTIP will vest in full at 30% in April 2025.
In respect of the environmental sustainability
target (carbon tonnes) the Company produced
3,942 carbon tonnes over the performance
period, meeting the requirement for maximum
performance (maximum was set at 4,194 carbon
tonnes). As a result, subject to the LTIP rules, the
environmental sustainability element of the LTIP
will vest in full at 10% in April 2025.
Further details can be found on page pages
94 to 95.
The Committee has reviewed the outcomes
arising from the application of the Policy during
the year and considers these outcomes to be fair
and appropriate. The performance of the Group
has been strong with robust leadership from the
executive team and this is reflected in the
Committee’s decisions in respect of variable pay
for the year. The Committee is confident that the
Policy has operated as intended during the year.
Other pay decisions in respect of 2024/25
Set out below are the other decisions made
during the year in respect of remuneration.
2024/25 Base salary increases –
set below the average increase in the
wider workforce
In line with the disclosure in last year's Directors’
Remuneration Report, the Committee reviewed
the executive director salaries during the year
and approved salary increases for Stuart Lorimer
and Jonathan Kemp. However, Roger White did
not receive any salary increase ahead of his
retirement on 30 April 2024. Both Stuart Lorimer
and Jonathan Kemp were awarded a 4% salary
increase, effective from 1 April 2024, which was
lower than the average increase of 4.2% granted
to the wider workforce. Euan Sutherland’s salary
was not subject to any increase following his
appointment to the Company on 1 May 2024.
2024/25 LTIP awards – awards granted
using three performance metrics of EPS,
TSR and Environmental Sustainability
The Committee concluded that it was appropriate
to grant LTIP awards in May 2024 at a value
equal to 150% of base salary, consistent with the
normal maximum opportunity under the Policy
to both Euan Sutherland and Stuart Lorimer.
These LTIP awards will be assessed over the
three year vesting period using the performance
metrics of EPS, TSR and environmental
sustainability, with relative proportions of 60%,
30% and 10%. No 2024/25 LTIP awards were
granted to Roger White or Jonathan Kemp.
