47153 AG Barr Annual Report 2025 AW4 SQ WEB - Flipbook - Page 90
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
targets prior to the vesting date or taken into
consideration at the point of final assessment.
Taking this into account, the Committee is
confident that the target range selected is
appropriately stretching and will help the
Group drive growth in shareholder earnings.
TSR is a relative performance measure which
creates strong alignment between the executive
directors and shareholders. As for the LTIP
awards granted in 2024, the TSR performance
of the Company will be compared over the
three years to the TSR of the FTSE 250 index
(excluding investment trusts and financial
services companies).
The Committee believes that environmental
sustainability is important to the long term
success of the business and the executive
directors’ remuneration should be related to their
performance in this area. Consistent with the
LTIP awards granted in 2024, the environmental
sustainability performance of the Company will
feature as a performance metric for the 2025 LTIPs
based on environmental sustainability targets.
Details of the 2025 LTIP awards are provided on
page 96.
Details of the performance targets set for the
2025 LTIP awards are considered commercially
sensitive and will be disclosed in the Annual
Report on Remuneration for the year ending
31 January 2026.
2025/26 Chair of the Board and
non-executive directors’ fees
Looking ahead, the Company is ambitious for
future growth and there is a renewed energy and
enthusiasm across the business to seize the many
opportunities available to us under our new long
term strategy. The Committee looks forward to
continuing to support the incentivisation and
recognition of success delivered by the leadership
team and colleagues across the Company.
The Chair’s fees are determined by the
Committee, while the fees for non-executive
directors are determined by the Board, excluding
any non-executive directors who would be
directly affected by the decision, to ensure
impartiality in the decision-making process.
Following a thorough review, it has been
determined that adjustments to the fees for the
Chair, non-executive directors, and additional
fees for chairing sub-committees are necessary
going forward. These changes commence a
process to narrow a significant gap and bring
the compensation closer to the lower quartile
of the market median, better reflecting the time
commitments and demands of these roles
within the Company.
Effective 1 April 2025, the Chair’s fee will increase
to £210,000 to more appropriately reflect the
required time commitment for a business with
the size and complexity of AG Barr. The new
fee level sits broadly at the lower quartile of
the FTSE 250. The Board also reviewed the
non-executive directors’ fee levels and details of
the changes are set out on page 91. The Board
and Committee will continue to monitor the
Chair and non-executive directors’ fee levels
to ensure that they remain appropriate.
I look forward to your support at the upcoming AGM.
Louise Smalley
Chair of the Remuneration Committee
25 March 2025
88
*
Items marked with an asterisk are non-GAAP measures.
Definitions and relevant reconciliations are provided in the
Glossary on pages 192 to 195.
