b'Annual Report & Accounts 2022 Mercia Asset Management PLC 63Remuneration reportRemuneration Committee remuneration package are base salary, an annual performance-The Remuneration Committee is responsible for determiningrelated bonus scheme and participation in the Groups long-and agreeing with the Board the framework for the remunerationterm share option scheme, carried interest and performance of the Chair, the Executive Directors and other designated seniorplans. Other benefits include employer contributions to aGovernanceexecutives. Within the terms of the agreed framework, it is alsodefined contribution personal pension scheme, life assurance, responsible for determining the total individual remunerationprivate health insurance and permanent health insurance.packages of those persons including, where appropriate,Only base salaries are pensionable.salaries, bonuses, share options and other long-term incentives. The remuneration of Non-executive Directors is a matter for theIn the Groups earlier stages of its development, there was Chair and the Executive Directors. The remuneration of the Chaira natural tension between affordability and the need to is a matter for the Board. No Director is involved in any decisionattract and retain talent in a competitive sector. In 2016, the as to his or her own remuneration. Committee engaged external remuneration consultants to review executive remuneration throughout the Group. The For the year to 31 March 2022, the Remuneration Committeereview focused on four elements of remunerationbase comprised Ian Metcalfe as Chair, Caroline Plumb OBE andsalary, annual bonuses, long-term incentives and benefit Dr Jonathan Pell. The Remuneration Committee is expectedpackagesin the context of the then current remuneration to meet at least twice a year and otherwise as required.practices and the Groups own objective of sustained During the year, the Committee met formally seven times,long-term capital growth. The external consultants also and on other occasions on an as required basis. benchmarked the existing remuneration packages against a defined comparator group.Remuneration policyThe Remuneration Committee continues to believeGiven the significant progress that the Group subsequently that the success of the Group depends in large part onmade, in December 2020 the Committee commissioned the performance of the Executive Directors and seniora new external remuneration review. The remuneration management team and in being able to attract, retainconsultants were asked to consider both short and long-term and motivate people of high calibre and experience. Theremuneration structures for the Groups senior Executive Committee also recognises the importance of ensuring thatTeam, as well as a number of other senior investment roles. employees are incentivised and identify closely with the achievement of the Groups strategic objectives, the leadingExisting base salaries, which had not been increased in 2020 ones of which are to achieve incremental shareholder valuedue to the economic impact of the pandemic, were reviewed over the medium term through the successful investmentagainst a listed peer group and were found to be in the lower in, and subsequent exit from, technology-based companies,quartile for that group. These base salaries were subsequently leading to growth in pre-tax profits and net assets perincreased for the year to 31 March 2021. No changes were share, as well as growth in the Groups total assets underrecommended to existing bonus and benefits policies, but the management and an increasing annual dividend. review also recommended the introduction of a new Executive performance share plan (PSP) linked to total shareholder Accordingly, the Committee seeks to provide a fair, balanced,return. Following extensive consultation with the Companys competitive and affordable remuneration package forNominated Adviser and leading shareholders, a new long-term its Executive Directors and all other staff, while ensuringincentive plan was announced for the four senior executives that a significant proportion of the total remuneration ofon 12 July 2021, with effect from 1 April 2021.each Executive Director is linked to the performance of the Group, against a set of pre-determined and largely financial objectives. For Executive Directors, the main elements of their'