Virgin Money UK PLC 2020 LTIP Financial Targets Update (5416X)
May 05 2021 - 1:05AM
UK Regulatory
TIDMVMUK TIDM91XR
RNS Number : 5416X
Virgin Money UK PLC
05 May 2021
Virgin Money UK PLC
(Company)
LEI: 213800ZK9VGCYYR6O495
5 May 2021
2020 Long-term Incentive Plan Financial Targets Update
At the time of publication of the Directors' Remuneration Report
alongside the Virgin Money UK PLC 2020 Annual Report &
Accounts, the material uncertainty in economic backdrop meant it
was not possible to set quantitative 3-year targets. The VMUK PLC
Remuneration Committee was therefore not in a position to propose
the specific targets that underpin the financial elements of the
2020 Long-term Incentive Award (LTIP) but committed to updating
shareholders on its approach and key metrics within six months.
Following that commitment, and after careful consideration in
consultation with major shareholders, the Committee is pleased to
provide an update on the performance measures and weightings that
will apply. These remain broadly aligned with the measures and
weightings applicable to the FY2019 LTIP Award and central to the
delivery of the Group's long-term strategy. The measures,
weightings and targets for the 2020 LTIP (with performance assessed
at the end of FY2023) will be as follows.
Strategic Measures Weighting Threshold Target Max
Pillars
------------------------
Pioneering Relationship Deposit
Growth Growth(1) 10.00% 4 5.5 7
------------------------- ---------- -------------- ---------- --------
Super Straightforward
Efficiency CIR(2) 10.00% 53 50 47
----------------------- ------------------------- ---------- -------------- ---------- --------
Operating Cost Outcome
(GBPm)(2) 10.00% 810 780 750
------------------------- ---------- -------------- ---------- --------
Disciplined
and sustainable ROTE(3) 25.00% 6.0 8.0 10.0
----------------------- ------------------------- ---------- -------------- ---------- --------
Risk Scorecard 20% Remuneration Committee
assessment against qualitative
and quantitative measures(4)
----------------------- ------------------------- ---------- ------------------------------------
Delighting ESG Scorecard 15.00% Remuneration Committee
Customers assessment against qualitative
and Colleagues and quantitative measures(5)
----------------------- ---------- ------------------------------------
CMA Ranking 10.00% Top 5 Top 3 Top 2
------------------------- ---------- -------------- ---------- --------
Total 100%
---------- -------------- ---------- --------
(1) Compound Annual Growth Rate (CAGR) 2020 - 2023
(2) CIR and operating costs are on an underlying basis.
(3) RoTE calculated on a statutory basis.
(4) Performance will be assessed by the Committee based on
several qualitative and quantitative inputs such as feedback from
the Chair of the Board of the Risk Committee and achievement of the
long-term objectives of the organisation. Specific focus will be on
customer complaints, credit risk policy compliance, operational
risk losses and cost of risk.
(5) Performance will be assessed by the Committee based on
several qualitative and quantitative measures such as operational
carbon emissions, senior leadership diversity and colleague
engagement. Our aim is to develop a more sophisticated set of
metrics over time.
The LTIPs are based on a broad framework of financial and
non-financial targets to ensure a balanced range of considerations.
The targets have been established based (where practical) on market
consensus, at the time of proposal, in the absence of formal
company targets for 2023.
The Remuneration Committee remains cognisant of the uncertain
market conditions under which these awards are made and retains
discretion in ensuring that the final outcome reflects the
performance of the Group and considers all relevant factors. This
includes taking any steps necessary to mitigate excessive windfall
gains. Given the level of uncertainty in the economy over the short
to medium term the Committee will make this assessment at the time
of vesting, at which point the Committee will describe the factors
considered and what discretion (if any) that was applied.
Announcement authorised for release by Lorna McMillan, Group
Company Secretary.
For further information, please contact:
Investors and Analysts
Richard Smith 0 7483 399303
-------------------------------------
Interim Head of Investor Relations richard.smith@virginmoneyukplc.com
-------------------------------------
Company Secretary
-------------------------------------
Lorna McMillan 07834 585 436
-------------------------------------
Group Company Secretary lorna.mcmillan@ virginmoneyukplc.com
-------------------------------------
Media Relations
-------------------------------------
Press Office 0800 066 5998
-------------------------------------
press.office@ virginmoneyukplc.com
-------------------------------------
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