45 Finsbury Food Group Annual Report & Accounts 2018
Directors’ Remuneration Report (unaudited)
Notes to the Table
Base Salaries The base salaries for the Executive Directors are set with effect from 1 October each year. The salaries in the financial years ended 1 July 2017 and 30 June 2018 were as follows:
Executive Director J G Duffy
S A Boyd
From 1 October 2016 £350,265
£254,500
From 1 October 2017 £420,000
£294,200
The rationale for the increase in base salaries, and the related reduction in LTIP award, is set out in the Statement from the Chairman of the Remuneration Committee on page 42.
Taxable Benefits The taxable benefits for the Executive Directors in the year included a car allowance and private medical insurance. The Executive Directors do not receive a pension allowance.
Annual Bonus The annual bonus is the total value of the bonus earned in respect of the financial year (including the amount delivered in shares). For the financial year ended 30 June 2018 Executive Directors were able to earn a bonus of up to 100% of annual base salary subject to the achievement of stretching EBITDA performance targets.
The following table sets out the bonus pay-out to the Executive Directors for 2017-18 and how this reflects EBITDA performance for the year. Performance measure
Actual performance
Earnings before interest, tax, depreciation and amortisation (EBITDA)
EBITDA £25,600,000
Resulting level of award for each Executive as a percentage of salary*
25%
The Executive Directors have waived this bonus as the Group has incurred significant exceptional costs in respect of the closure of two sites during the year.
Long-term Incentives Awards granted on 4 December 2015 were based on performance over the three financial years to 30 June 2018 and vested as to the amounts set out below. These awards are subject to a two year holding period.
Performance conditions Adjusted diluted EPS
50% of the award subject to adjusted diluted Earnings Per Share in the final year of the performance period
50% of the award based upon Relative Total Shareholder Return against the FTSE Small Cap (excluding investment trusts) (“TSR”) over the performance period
Total % of award vesting
In arriving at the adjusted EPS out-turn of 9.81p the Committee has excluded the exceptional costs relating to the closure of two sites. Number of shares granted
J G Duffy S A Boyd
695,095 505,051
476,364 1. The LTIP has been valued based on the three month average share price to the financial year end of 124.83p per share.
Below 7.65p 7.65p
Relative TSR ranking Below median Median
Between median and upper quartile
10.20p
Actual performance (adjusted diluted EPS)
% vesting 0
25%
Between 7.65p and 10.20p Straight-line vesting 10.20p
100%
% vesting 0
25%
Straight-line vesting 100%
Above upper quartile
100.00% 50.00% 94.32% 9.81p 88.63% 44.32% % of this element vesting % of award
Percentage increase 20%
16%
Bonus to be paid Nil
Number of shares vesting Value of LTIP shares vesting1 655,613
£818,401 £594,645
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