Greene King introduces executive pay changes: Greene King has moved to change the way it pays and incentivises its executive directors. Changes include a re-weighting in favour of long-term performance incentives and clawback provisions. The changes come as the company annual report discloses chief executive Rooney Anand earned a £442,000 bonus on top of his £530,000 basic, lower than the year before. Finance director Matthew Fearn earned a bonus of £240,000 on top of his basic of £335,000. Chairman of the remuneration committee Lynne Weedall told shareholders: “As you may be aware, the government has reformed the way directors’ remuneration is reported and voted upon. The new legislation will apply for our next annual report but the committee has decided to adopt some of the changes early, including separate sections on our remuneration policy going forwards and on implementation of our policy during the last year. During the past year we have made good progress on our strategic priorities, increasing the size of our retail estate and reducing that of our tenanted and leased estate. At the same time, profit before tax and exceptional items has increased by 6.6%, the dividend has increased by 7.3% and our share price by 39% year‑on‑year. Our strong performance has helped ensure that the awards made under the long‑term incentive plan (LTIP) three years ago will vest in full on the third anniversary of their grant. The bonus outturn this year is 83% of salary for the CEO and 72% of salary for the group FD, which is lower than last year’s, reflecting the very stretching targets set at the beginning of the year. We continue to exercise restraint in executive pay levels and salary increases for executives will be a maximum of 2% for the forthcoming year, which is lower than the average of the workforce generally. The company’s LTIP is due for renewal this year and we have taken the opportunity to undertake a full review of the company’s incentive arrangements. Following this review, the committee has made some amendments to the remuneration policy to ensure it both supports and motivates our senior team whilst at the same time continues to align them to the company’s strategic objectives and to achieving long‑term growth for shareholders. We have consulted with a number of our major shareholders in relation to these proposals and have been pleased with the generally positive responses received. The key changes are as follows: it was determined that the balance between short term (annual bonus) and longer term (LTIP) should be re‑weighted in favour of long‑term performance and that the performance conditions in the annual bonus and new LTIP should have a slightly different emphasis; the annual bonus potential for executive directors will be reduced from 150% of salary to 100% of salary through the removal of the deferred share bonus scheme; the LTIP grant level will be increased and LTIP awards will be subject to stretching EPS and ROCE targets, measured over three financial years; and executive share ownership guidelines and clawback provisions – applicable to both the annual bonus and LTIP – are being introduced, in line with best practice. The committee is conscious of the current climate on executive pay and is comfortable that this modest increase in the executive directors’ incentive opportunity does not raise total remuneration above mid‑market levels, particularly given the longer‑term focus of the package and the challenging targets that will apply to the enhanced LTIP awards.” In addition to the annual bonus figures above, £130,000 (2012: £110,000) of bonus will be payable to Rooney Anand and £82,000 (2012: £46,000) to Matthew Fearn under the terms of the economic profit deferred share bonus scheme introduced in 2010. Additional economic profit of £3.7m in excess of the strategic plan was achieved against a maximum target of £7.5m. This resulted in a payout of 49% of the economic profit element of the bonus scheme, equating to 24.5% of each of Rooney Anand’s and Matthew Fearn’s salaries, compared with a maximum payout of 50% of salary.