94 John Lewis Partnership plc Annual Report and Accounts 2016 Remuneration Committee report


“ During the year, the Remuneration Committee focussed on the annual pay review for the Chairman and Executive Directors and new appointments to the Partnership Board.”


Denis Hennequin Non-Executive Director and Chair of the Remuneration Committee


About the Remuneration Committee Role of the Committee


The Remuneration Committee has oversight of the application of the pay policy, including Rule 61 and Rule 62, to executive remuneration for the Chairman, Executive Directors, Senior Managers who report to the Chairman, Non-Executive Directors and the Partners’ Counsellor.


The policy aims to attract, retain and motivate executive management of the quality required to run the Partnership successfully without paying more than is necessary, and informed by market rate information.


The Remuneration Committee


operates in accordance with its Terms of Reference that are available atwww.johnlewispartnership.co.uk


Who advises the Remuneration Committee?


The Committee has retained Willis Towers Watson as independent remuneration consultants who advise the Remuneration Committee on the Partnership’s pay policy and its application to Senior Reward. Willis Towers Watson also provides consulting advice on the Partnership’s job evaluation system and pension, and is actuary to the John Lewis Partnership Trust for Pensions. The Committee was also advised during the year by Tracey Killen, Director of Personnel and Andrew Bridges, Head of Reward and Policy.


Membership


The members of the Committee at the date of this report are Denis Hennequin (Chair), Steve Gardiner, Baroness Hogg and Lucy Parks. There were seven Committee meetings held during the year under review. Committee membership during the year under review and Directors’ attendance at those meetings is shown in the table below.


The Remuneration Committee comprises two independent Non-Executive Directors and two Elected Directors. This provides a broad mix of members who are independent of executive management and mindful of the Partners’ interest.


Member


Denis Hennequin Baroness Hogg


Joined 3 June 2015 and left 22 October 2015 Chris Coburn


Meetings attended/ eligible to attend


7/7 7/7


2 5/5


Left 4 June 2015 and reappointed 22 October 2015 Steve Gardiner


Left 22 October 2015 Kim Lowe


Joined 22 October 2015 Lucy Parks


The agenda for each meeting is approved by the Committee Chairman and each Committee member has the right to request reports on matters of interest.


Key activities during the


period under review Submitted a recommendation on the Chairman’s pay to the Partnership Board


Set the pay of the Partnership’s Executive Directors and Senior Managers who report to the Chairman


Approved the remuneration for the new appointment to the Partnership Board: Group Finance Director and Group Development Director


3/3 5/6 1/1


Quorum: two members, including one Non-Executive Director and one Elected Director. When approving the remuneration of Non-Executive Directors, the quorum is two Elected Directors.


Elected Directors 2 Non-


Executive Directors


Committee composition*


*at the date of this report


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