No annual bonuses were paid to Marston’s executive directors in its most recent financial year and the company plans to limit future payments under its long term incentive plan (LTIP), according to Marston’s Annual Report.
Total remuneration for chief executive Ralph Findlay fell from £815,690 to £636,080. His basic salary grew from £480,000 to £495,000 - executive directors had a 3% pay increase in line with salary rises across the group. However, last year Findlay received an annual bonus of £192,000.
The Remuneration Report in Marstons’ Annual Report says: “Marston’s earnings are broadly in line with last year and, as the underlying premise of a bonus scheme is to reward growth, no annual bonus was earned by the executive directors in respect if the period ended 5 October 2013.”
The report says the LTIP lapsed because earnings per share growth over the three years to 5 October were below the RPI of 3%.
The current LTIP expires in 2004 and the report says the current performance measures under the plan do not “fully reflect Marston’s strategic objectives” of delivering sustainable growth, increasing return on capital and reducing leverage.
The report calls for “longer term stretching performance targets” and a proposed change to the LTIP from 2013/2014 that will see the maximum award increased from 100% to 125% of salary.
However, the amount that will vest at threshold will fall from 35% to 25%. It means the maximum amount that could be earned under the LTIP would fall from 35% to 31.25% of salary.
The new LTIP policy will include updated provisions to “reflect current best practice”, including ‘clawback’ provisions and treatment of leavers.
