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Mon 19th Dec 2016 - Enterprise bosses see pay fall despite bonus increase, Punch chief receives increased award for 'strong leadership'
Enterprise Inns bosses see remuneration fall despite annual bonus increase: Enterprise Inns executive directors have seen their remuneration fall despite receiving increased annual bonuses, the company’s annual report has revealed. Chief executive Simon Townsend saw his remuneration drop to £1,118,000 in 2016 compared with £1,628,000 the previous year, while finance director Neil Smith received £919,000 compared with £1,410,000 the year before. Both received increased annual bonus payments – Townsend £498,000 (2015: £282,000) and Smith £410,000 (2015: £238,000) following the increase in the bonus potential to 150% of salary made last year to reflect the challenges of the company’s new strategy that involves converting as many as 850 tenanted pubs to managed. However, neither Townsend nor Smith received any long-term incentive payments (LTIP) this year having been awarded £737,000 and £672,000 respectively in 2015, resulting in the total drop. Townsend’s remuneration of £1,118,000 consisted of £472,000 in salary and fees, £28,000 in taxable benefits, £118,000 pension, £498,000 annual bonus and £2,000 in SIP matching shares. Smith’s total package of £919,000 was made up of £385,000 in salary and fees, £28,000 in taxable benefits, £96,000 pension and £410,000 annual bonus. In his report, remuneration committee chairman Peter Baguley said: “Overall performance has generated annual bonus payouts for the executive directors in respect of the 2016 financial year in the range of 70% to 71% of the maximum opportunity of 150% of salary, compared with between 61% to 63% of the maximum opportunity of 100% of salary in the prior year. The long-term incentive plan awards granted in respect of plan year 2012, which was based solely on total shareholder return performance in the three-year period prior to December 2015, did not meet the challenging minimum vesting target and lapsed in full. We remain firmly committed to a responsible approach in respect of executive pay and that our remuneration structure should reward sustainable business performance and therefore deliver long-term value to shareholders. Salary reviews for the executive directors have not yet been conducted for the financial year ending 30 September 2017. Any reviews will be effective on 1 January 2017 and I anticipate increases, if any, would be modest, as they were last year, and will be based on merit and in line with the group’s average pay increase and prevailing market conditions. Other benefits, including pension provision, will be maintained at existing levels or by reference to existing percentages of base salary as applicable. The structure and quantum of the bonus and LTIP arrangements will be unchanged from the arrangements introduced in 2016.” Enterprise Inns’ annual meeting will be held on Thursday, 9 February.

Punch chief executive receives increased annual bonus award to reflect ‘strong leadership and personal performance’: Punch chief executive Duncan Garrood has seen his annual bonus award increased to reflect his “strong leadership and personal performance” in his first full year in office, the company’s 2016 annual report has revealed. Garrood stood to earn a bonus of 32.5% of salary but the remuneration committee increased this to 40%, resulting in a payment of £160,000. The figure was based on the company’s Ebitda performance, where it achieved £177.5m against a target range of £175.6m to £181.9m, as well as personal targets. It meant Garrood earned total remuneration of £656,000, which also consisted of £400,000 salary, £16,000 in benefits and £80,000 pension. Meanwhile, chief financial officer Steve Dando saw his remuneration drop to £480,000 in 2016, compared with £520,000 the year before. His payment consisted of £289,000 salary, £16,000 in benefits, £117,000 bonus and £58,000 pension. In his report, remuneration committee chairman Angus Porter said: “The Ebitda performance and achievement of personal targets resulted in a bonus outcome of 32.5% of salary for the chief executive, and 40% for the chief financial officer. The policy of the remuneration committee is only to exercise discretion in exceptional circumstances. However, the board recognises, in his first full year in the role, the chief executive has demonstrated strong leadership and personal performance, and the remuneration committee has therefore exercised its discretion and increased his bonus award to 40% of salary, in line with the outcome for the chief financial officer.” Garrood has seen his salary remain at £400,000 due to his “relatively recent appointment”, while Dando received a 2% increase, which was in line with the rest of the company, to £291,825.

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