20645_Scapa_AR_160504

REPORT OF THE REMUNERATION COMMITTEE
CORPORATE GOVERNANCE
STATEMENT FROM THE CHAIRMAN
OF THE REMUNERATION COMMITTEE,
MARTIN SAWKINS
“It is our belief that Executives should
be rewarded on the basis of their
individual performance and the value
created for shareholders.”
This report sets out the activities of the
Remuneration Committee for the year ended
31 March 2016. The report sets out the
remuneration policy and remuneration details
for Scapa’s Executive and Non-Executive
Directors, and has been prepared in
accordance with Schedule 8 of The Large
and Medium-sized Companies and Groups
(Accounts and Reports) Regulations 2008
as amended in August 2013, which the
Company has voluntarily chosen to follow.
The information provided in this part of the
Directors’ Remuneration Report is not
subject to audit.
DEAR SHAREHOLDER
On behalf of the Board, I am pleased to
present the Directors’ Remuneration Report
for the year ended 31 March 2016.
OUR STRATEGY
Our continued success has been shaped by
the strategy to create a balanced portfolio of
businesses in our chosen markets of
Healthcare, Automotive, Cable, Construction
and Specialty Products, increase customer
intimacy and integration, make earningsenhancing
acquisitions and maintain our
process of self-help and good cost control.
EXECUTIVE REMUNERATION AND
LINK TO STRATEGY
In 2014, we voluntarily sought and obtained
shareholder approval for the Remuneration
Policy, which is clearly focused on rewarding
superior and sustained performance. It is our
belief that Executives should be rewarded on
the basis of their individual performance and
the value created for shareholders. Variable
elements of pay are therefore focused on
simple and transparent measures of key
strategic objectives, operating profit, EPS
growth and sustainable growth in
shareholder value. Bonus and long-term
incentive scheme targets are purposely
designed to be challenging and drive the
long-term success of the Group.
REMUNERATION OUTCOMES OF 2016
Full details of the remuneration decisions for
2016 are set out in the Directors’ Annual
Remuneration Report on pages [XX] to [XX].
The Group reported very pleasing results,
achieving £21.3m underlying trading profit on
revenue of £246.7m, and continuing year on
year growth since 2010 under the direction
of Heejae Chae, Paul Edwards and the
Executive Team. Trading profit margin
improved to 8.6% and underlying EPS
increased to 10.6p.
The annual bonus target for the Executive
Directors and Executive Team was set by the
Committee at the beginning of the financial
year. The target was met and the Executive
Directors will receive an annual bonus
equivalent to 100% of salary for 2016.
During the year, the Committee approved
payments under the 2010 Share Price
Incentive Plan following the growth in the
Company’s share price to above £1.50 for
30 consecutive days. Under this Plan,
Heejae Chae and Paul Edwards each
received a bonus equivalent to 100% of
salary and one other member of the
Executive Team received a bonus equivalent
to 75% of salary.
The Committee has also reviewed the
Company’s EPS growth over the three-year
period ended 31 March 2016 to establish
whether the performance criteria for vesting
of awards made under the Company’s
Performance Share Plan in 2013 had been
achieved. The underlying EPS growth over
the three-year performance measurement
period exceeded the target for 100% vesting
and the awards will vest in full.
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ANNUAL REPORT AND ACCOUNTS 2016 SCAPA GROUP PLC