Enterprise Inns chief executive Ted Tuppen saw his total pay for 2013 fall from £1,159,00 to £1,024,000 after a 42% fall in his annual bonus (£192,000).
Tuppen, who steps down as chief executive on 6 February 2014, was awarded 30% of his salary in his bonus from a maximum of 100%; 80% of the bonus payment for executive directors is subject to earnings per share targets, and in the year Enterprise reached a threshold of 19p but missed the target of 19.6p.
Chief operating officer Simon Townsend, who is to succeed Tuppen as CEO, saw his total remuneration fall from £695,000 to £620,000 after his bonus declined from £186,000 to £111,000.
Chief financial officer Neil Smith’s pay packet fell from £651,000 to £581,000, with his bonus down from £187,000 to £110,000.
The Remuneration Report from Enterprise’s Annual Report for the year to 30 September 2013 says: “We are not proposing any major changes to the remuneration policy for the 2014 financial year. However, during the course of the coming year, the [Remuneration] Committee intends to review the annual bonus and long–term incentive scheme arrangements as the current plans are due to expire in 2015.”
It adds: “For the year under review, the business has made good progress, particularly given the challenging trading conditions including the adverse weather at the beginning of the year and the impact from the failure of our wines and spirits distributor.
“As communicated previously to shareholders, Enterprise’s key strategic objectives for the 2013 financial year were to focus on improving like–for–like growth in net income and to reduce net debt through the management of cash and disposal of underperforming pubs. In spite of the challenging conditions the business has continued to make progress, delivering like–for–like net income growth in our final quarter.
“The company has also successfully delivered on the disposal plan and that, coupled with the issuance of a new convertible bond, has resulted in a substantial reduction in the group’s bank debt position. These achievements have been reflected in Enterprise’s share price, which has made significant gains over the year.
“This performance has generated annual bonus payouts in the range of 29% to 31% of base salary. The performance and matching awards granted under the long–term incentive plan (LTIP) in 2010 failed to meet the threshold total shareholder return (TSR) target and lapsed in January 2013. The LTIP awards granted in 2011, which are based on TSR performance to January 2014, may not meet the minimum vesting target.”
