b'Remuneration report continuedThe Committee has currently agreed to a maximum bonus of 100% of base salary for exceptional performance for 2020/21, with the bonus award again payable in cash up to 50% of base salary and the remainder in deferred shares. The agreed criteria for determining the ultimate 2020/21 award are:1.Total shareholder return45% weighting2.Funds under management performance30% weighting 3.Environmental, social and governance progress, high performing teams and Mercia core values25% weightingThe Committee will continue to monitor the affordability and suitability of the Groups remuneration policy and performance criteria and will maintain informal dialogue on this subject with both the Groups Nominated Adviser and remuneration specialists.Directors service contractsThe table below summarises the service contract and letter of appointment details for each Executive and Non-executive Director as at the date of this report:AnnualDate salary Noticeof appointment 000 periodDr Mark Payton 15 December 2014 235 6 monthsMartin Glanfield 15 December 2014 200 6 monthsJulian Viggars 17 April 2018 200 6 monthsIan Metcalfe 15 December 2014 75 3 monthsRay Chamberlain 15 December 2014 40 3 monthsDr Jonathan Pell 22 December 2017 40 3 monthsCaroline Plumb OBE 12 June 2018 40 3 monthsAll Directors have voluntarily agreed to no base salary increase for 2020/21, as part of the Groups cost containment actions, during the period when COVID-19 is impacting the Groups performance. Ian Metcalfes annual salary increased to 75,000 per annum with effect from 2 July 2019, to compensate him for his new role as Chair of the Group. Equity-based incentive schemesThe Committee has implemented two long-term incentive schemes:The Mercia Company Share Option Plan (CSOP)The Remuneration Committee is responsible for issuing awards of options to purchase Ordinary shares under the Groups share incentive plan, known as the Mercia CSOP, which was adopted by Mercia Asset Management on 8 December 2014. All Executive Directors and employees are eligible to participate. The Committee intends that appropriate awards be made over time, not exceeding the limits contained in the CSOP.The Mercia CSOP comprises two parts. The first part satisfies the requirements of Schedule 4 to the Income Tax (Earnings and Pensions) Act 2003 (so that options granted under it are subject to capital gains tax treatment). The second part will be used to grant options which cannot be granted within the limit prescribed by the applicable tax legislation and which will not therefore benefit from favourable tax treatment. No options will be granted under the Mercia CSOP more than 10 years after its adoption. The number of Ordinary shares over which options may be granted on any date is limited so that the total number of Ordinary shares issued and issuable in respect of options granted in any 10-year period under the Mercia CSOP and any other employee share scheme is restricted to 10% of the issued Ordinary shares from time to time.The methodology for determining the market value of an Ordinary share for all grants of options under the Mercia CSOP has also been agreed with HMRC, such that the Group will use the closing mid-market price quoted by the London Stock Exchange on the trading day immediately preceding the date of grant.66 Mercia Asset Management PLCAnnual Report and Accounts 2020'