b'70 Mercia asset Management PLc Annual Report and Accounts 2021Remuneration report continuedThe 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.All awards are subject to a performance condition. The performance condition requires that the total shareholder return from the date of grant to the third anniversary is not less than 6% (compound) per annum, using a volume-weighted average share price for the 90 days prior to the third anniversary of the date of grant. Where the performance condition has not been achieved on the third anniversary or an employee leaves before the third anniversary, those options lapse.In the year to 31 March 2021, options were granted to the Executive Directors and a number of staff. The total number of options in issue at 31 March 2021 was 20,784,140 (2020: 15,700,140).The Mercia Carried Interest Plans (CIPs)Mercia Asset Management operates CIPs for the Executive Directors and certain other senior investment-focused staff (Plan Participants). Each CIP will operate in respect of direct investments made by Mercia Asset Management during a 24-month period, save that the first CIP was for the period from the plans adoption on 1 August 2015 to 31 March 2017. The second plan period ran from 1 April 2017 until 31 March 2019. The third plan period ran from 1 April 2019 until 31 March 2021.Once Mercia Asset Management has received an aggregate annualised 6% realised return during the relevant investment period, Plan Participants will receive, in aggregate, 10% of the net realised cash profits from the direct investments made over the relevant period, including taking account of any investment losses. Plan Participants carried interest is subject to good and bad leaver provisions.Mercia Asset Management also implemented a Phantom Carried Interest Plan (PCIP), based on the above criteria, in respect of the direct investments which the Group acquired shortly before admission to AIM in December 2014 and those new direct investments made in the post Initial Public Offering (IPO) period leading up to the implementation of the CIP on 1 August 2015.Directors remunerationThe aggregate remuneration received by the Directors who served during the year is set out below:Salaries Pension Taxable Performance payable contributions benefits related bonus2 Total2021 2020 2021 2020 2021 2020 2021 2020 2021 2020000 000 000 000 000 000 000 000 000 000executive directorsDr Mark Payton 235 235 26 26 2 2 230 78 493 341Martin Glanfield 200 200 22 22 3 3 196 66 421 291Julian Viggars 200 200 22 22 2 2 196 66 420 290non-executive directorsIan Metcalfe 75 68 75 68Ray Chamberlain 40 40 40 40Dr Jonathan Pell 40 40 40 40Caroline Plumb OBE 40 40 40 40Diane Seymour-Williams 1 1717 Susan Searle3838847 861 70 70 7 7 622 210 1,546 1,148Mercia pays reasonable expenses incurred by its Non-executive Directors and may settle any tax and National Insurance due on such payments where relevant.1Diane Seymour-Williams was appointed as a Non-executive Director on 3 November 2020.2Excludes amounts payable under the Mercia Fund Management Phantom Carried Interest Plans.'