Executive Directors' remuneration
In setting the overall remuneration policy, general trends and average increases throughout the Group are taken into account when setting executive Directors' reward packages.
The Committee, on behalf of the Board, determines the remuneration packages of the executive Directors of the Company and the Group Chair and the Company's remuneration policy. In setting the remuneration policy, the Committee takes into account a number of factors, including:
- general trends in pay and conditions throughout the Group.
- the positioning of remuneration levels against the external market - the Committee is, however, aware of the risk of an upward ratchet in remuneration levels through over-reliance on comparative survey data.
- the balance between fixed and variable pay - more specifically, variable pay should form a significant but not disproportionately high level of remuneration.
- the strategy of the business.
In setting the overall remuneration policy, general trends and average increases throughout the Group are taken into account when setting executive Directors' reward packages. A key feature for the executive Directors is that a higher proportion of their remuneration package is delivered through performance related pay, which has a greater linkage to the results of the Group.
Further details of the Executive Directors' remuneration can be found in the Remuneration section of the pages 134-150 of the 2020 Annual Report. These include basic salaries, annual and long-term incentive arrangements, external appointments and more.