Landsec chief executive Mark Allan received total remuneration of £2.7m for the year to 31 March, up more than 30% on the previous year’s total of just under £2m.
The proportion paid out as annual bonus was down on the previous year due to performance, the FTSE 100 company’s annual report, made public today, shows.
Allan (pictured) was eligible for up to 150% of salary as bonus, but was awarded 50% of this maximum, equating to 75% of his base salary of £820,000. The bonus was split between £410,000 in cash and £205,000 deferred into shares.
The report praises the executive team’s “focused and decisive” leadership, but says the reduced bonus percent award – down from 90% of maximum last year – is “appropriate in the context of the performance of the business”. Allan’s bonus the previous year was £1.1m.
However, his total remuneration this time was boosted by £1.1m of equity thanks to the expiry of a three-year vesting period under Landsec’s long term incentive plan.
Chief financial officer Vanessa Simms received a total remuneration package of £1.4m, including the 50% of maximum bonus, down from £2m the previous year.
The report also provides detail on the exit terms of Colette O’Shea, whose role as chief operating officer was made redundant on 30 September 2022. O’Shea, who joined Landsec in 2003, stepped down from her role there with effect from 31 March 2023, after a transitional period.
She received £281,906 in salary and normal benefits between 1 October 2022 and 31 March 2023 after leaving the board. She will continue to be an employee until the end of her 12-month notice period on 8 September 2023 and will continue to receive her salary and normal benefits until then.
O’Shea was eligible to receive an annual cash bonus of £184,000 for 2023 but will not receive the 2024 bonus.
She will also receive a statutory redundancy payment of £15,417 and up to £14,500 to cover legal fees, as well as up to £70,000 for ‘outplacement’ support.
On base salaries, the report shows that executive director salaries increased by 4% from 1 June 2023.
The pay rise across the wider workforce was 6.75%, 5% of which was accelerated and paid from 1 January 2023 to assist employees with the cost-of-living crisis.
This was in addition to a one-off award of £1,000 paid to all employees earning below £40,000 p.a.
To send feedback, e-mail julia.cahill@eg.co.uk or tweet @EGJuliaC or @EGPropertyNews
