Landsec chief executive Rob Noel’s pay fell from £2.7m to £1.7m this year as the company failed to meet long-term performance targets.
Although Noel’s annual pay and bonuses rose marginally, from £1.66m to £1.69m, no long-term incentives were vested this year as Landsec failed to meet targets for its two long-term incentive plan criteria.
Total shareholder return came to -18.3% since 2015 – compared with 0.5% across the sector – while annualised total property return was 6.6% – below the IPD average of 8.8%. To meet its targets, Landsec would have had to outperform the wider market by at least 1.3% per year in total shareholder return and by 0.4% in total property return.
Landsec’s remuneration policy allowed for up to £1.6m in long-term incentives for the chief executive this year – more than double Noel’s basic salary of £784m.
In total, Noel was eligible for £3.8m between his fixed pay, annual bonus and LTIP awards.
Although Landsec failed to meet its long-term targets, Noel received nearly 59% of his potential annual bonus, which was in line with his performance last year. He met 80% of his individual performance targets and 55.6% of the company performance targets.
However, last year the company hit its long-term total property return targets, netting Noel an additional £1.1m in pay.
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