b'Mercia asset Management PLc69Annual Report and Accounts 2021Given the significant progress that the Group had now made, in December 2020 the Committee commissioned a new external remuneration review. The remuneration consultants were asked to consider short and long-term remuneration structures for the Groups senior executive team, as well as a number of other senior investment roles. Existing base salaries, which had not been increased in 2020, were reviewed against a listed peer group and were found to be below the lower quartile for that group. After careful consideration, the Committee unanimously agreed to increase the base salary of the Chief Executive Officer by 15% and the Chief Financial and Chief Investment Officers by 10%. Their new annual salaries from 1 April 2021 are shown below. No changes were recommended to existing bonus and benefits policies, but the review also recommendedthe introduction of a new Executive performance share plan linked to total shareholder return. A new long-term incentive plan has therefore been introduced in the current financial year, with effect from 1 April 2021.The Committee has agreed to a maximum bonus of 100% of base salary for exceptional performance in the year to 31 March 2022, with the bonus award payable in cash up to 50% of base salary and the remainder in a form of deferred shares. The agreed criteria for determining the ultimate award are:1.Total shareholder return45% weighting2.Funds under management performance30% weighting3.ESG progress, high-performing teams and Mercia core values25% weighting.The Committee will continue to monitor the affordability and suitability of the Groups remuneration policy and performance criteriaFinancial statements Strategic reportand 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 asGovernanceat the date of this report:annualdate salary noticeof appointment 000 periodDr Mark Payton 15 December 2014 270 6 monthsMartin Glanfield 15 December 2014 220 6 monthsJulian Viggars 17 April 2018 220 6 monthsIan Metcalfe 15 December 2014 83 3 monthsDiane Seymour-Williams 3 November 2020 48 3 monthsRay Chamberlain 15 December 2014 40 3 monthsDr Jonathan Pell 22 December 2017 46 3 monthsCaroline Plumb OBE 12 June 2018 40 3 monthsA review of Non-executive Director remuneration was also undertaken during the recruitment of Diane Seymour-Williams. From 1 April 2021 the following Non-executive Director annual salary bandings were approved by the full Board:Chair83,000Senior Independent Director47,500Committee Chair46,000Non-executive Director40,000.These salary bandings will apply for the foreseeable future.Equity-based incentive schemesThe Committee has implemented a number of long-term incentive and retention 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 Mercia CSOP.'