28 Finsbury Food Group Annual Report & Accounts 2016
Directors’ Remuneration Report (Unaudited)
Statement from the Chairman of the Remuneration Committee Dear Shareholder
I am pleased to present the Directors’ Remuneration Report for the year ended 2 July 2016.
The Remuneration Committee believes that the Directors’ Remuneration Policy remains appropriate and will continue to apply it in 2016-17. Accordingly, we have not included the Directors’ Remuneration Policy in this Report, however, a copy is available in our 2016-17 Directors’
The Annual Report on Remuneration provides details of the amounts earned in respect of the year ended 2 July 2016 and how the Directors’ Remuneration Policy will be operated for the year commencing 3 July 2016.
Similar to last year and as a matter of best practice, the Annual Report on Remuneration has been prepared taking into account the remuneration reporting regulations applicable to fully listed companies in the UK.
Review of the 2015-16 Financial Year As described earlier in the Annual Report the Company has delivered exceptional performance, with continued organic growth in 2015-16 which
The 2015-16 annual bonus was subject to an EBITDA performance metric. The Company achieved £24.7million EBITDA for 2015-16 which was in excess of our stretch targets for the year and considerably greater than budget. Consequently, this resulted in the maximum annual bonus being earned, equating to 100% of salary. In line with the Committee’s commitment to align Executives’ interests with those of shareholders, 50% of total bonuses earned in the year will be paid as cash and 50% in the form of shares, in order to develop further the shareholdings of the 4.5 times salary respectively.
No long-term incentive awards vested with respect to a performance period ending in the year ended 2 July 2016.
Options granted in July 2011 and linked to the delivery of the turnaround of the business and the creation of shareholder value were due to expire in October 2016. To minimise the impact of share dilution arising from legacy share options, the Executive Directors agreed to cancel unexercised share options that had vested in 2013. In return they received a settlement which was equal to what would have been received if they had exercised their options in full on 26 April 2016 and sold such number of shares necessary to meet the exercise price of the share options and the income
The Committee remains committed to a responsible approach to executive pay and believes that salary increases above wider workforce increases of his role has grown substantially with the growth in the business and the Committee considered that this needed to be recognised by setting his base salary at the appropriate level. In October 2015 the Committee therefore determined to award S A Boyd a 17.5% salary increase in order
As disclosed in last year’s Directors’ Remuneration Report, a new long-term incentive plan was introduced in 2015 designed to motivate the
Outlook for the 2016-17 Financial Year Details in relation to the application of the Directors’ Remuneration Policy in 2016-17 are set out on page 29, however, the key elements will be as follows:
wider workforce.
• Annual bonus opportunity for 2016-17 will remain at 100% of salary. The annual bonus will continue to be based on EBITDA performance
• Awards under the LTIP will be made following the announcement of our results and the Committee will discuss the performance conditions will be disclosed in the Remuneration Report next year.
of the role in response to what has been, and will continue to be, an active growth strategy.
Raymond Duignan Chairman of the Remuneration Committee
16 September 2016
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88
