Update on directors' remuneration

RNS Number : 3583T

Standard Chartered PLC

17 March 2023

 

Standard Chartered PLC

17 March 2023

Update on directors' remuneration

2020-22 Long-term incentive plan (LTIP) performance outcome

In the 2022 directors' remuneration report (DRR), Standard Chartered PLC (SC) disclosed details of the expected performance outcome for the 2020-22 LTIP awards which began to vest on 15 March 2023. This showed that the threshold Return on Tangible Equity (RoTE) target had not been achieved and that the Remuneration Committee had determined the vesting outcome for the strategic measures at 22 per cent (out of a maximum 33.3 per cent). It was also stated in the DRR that performance against the Total Shareholder Return (TSR) threshold target would be measured in March 2023 and that at the time of the DRR publication, it was not expected to be achieved.

Unlike the RoTE and strategic performance measures, which are assessed on a financial year timeframe, TSR is measured over the LTIP performance period which starts from the date of grant (i.e., 9 March 2020 for the 2020-22 LTIP) and ends on the day before the third anniversary of the grant date. Performance is assessed by calculating the change in TSR over the three-year performance period, based on the average over a month at the start and end of the performance period, and comparing this with SC's disclosed peer group.

The final TSR performance was assessed on 9 March 2023. Following improved share price performance relative to the peer group since the start of 2023, SC ranked above median (i.e., the target for minimum vesting), resulting in an outcome of 14.8 per cent (out of a maximum 33.3 per cent) for TSR, and a total performance outcome of 36.8 per cent, as shown below:

Measure	Weighting	Performance for minimum vesting (25%)	Performance for maximum vesting (100%)	Assessment of achievement	Performance outcome
RoTE in 2022 with CET1 underpin	One-third	8.5%	11.0%	RoTE 8% CET1 passed	0.0%
Relative TSR performance against peer group	One-third	Median	Upper quartile	Above median, below upper quartile	14.8%
Strategic measures	One-third	Details of the performance achieved against the strategic proof points are set out on page 197 of the 2022 annual report.		Improved performance against our strategic priorities	22.0%
Total 2020-22 LTIP performance outcome					36.8%

The Remuneration Committee considered carefully the vesting of the 2020-22 LTIP awards, taking account of the factors set out in the DRR and the fact that the TSR measure had been satisfied in part. The Remuneration Committee considers that the values to be delivered continue to remain appropriate, and, for the reasons set out in the DRR, are not a windfall.

Updated single total figure of remuneration for 2022

The projected values disclosed and included in the single total figure of remuneration table for Bill Winters and Andy Halford in the DRR were based on 22 per cent vesting of the 2020-22 LTIP awards, using the three-month average share price to 31 December 2022.

The table below sets out the single total figure of remuneration for 2022 for Bill Winters and Andy Halford, updated with the final performance outcome for the 2020-22 LTIP awards. The single total figures for Bill and Andy represent year-on-year increases of 30 and 27 per cent respectively, reflecting the improved performance achieved for the 2020-22 LTIP awards.

	Bill Winters		Andy Halford
£000	2022	2021	2022	2021
Salary	2,418	2,370	1,546	1,515
Pension	245	237	154	152
Benefits	297	165	133	107
Total fixed remuneration	2,960	2,772	1,833	1,774
Annual incentive award	1,499	1,189	945	760
Actual vesting of LTIP award
Value of vesting awards based on   performance	1,540	779	954	498
Value of vesting awards based on   share price growth	173		107
Total variable remuneration	3,212	1,968	2,006	1,258
Singe total figure of remuneration	6,172	4,740	3,839	3,032

Notes to the single total figure of remuneration table are set out on page 198 of the 2022 annual report.

Enquiries to:

Gregg J Powell, Head of Investor Relations  [phone]

Shaun Gamble, Director, Group Media Relations:  [phone]

 

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