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The executive directors' salaries

Salaries for the executive directors were reviewed in June 2023 and have been increased by 5 per cent. The overall salary increases for the wider workforce ranged from 5–7 per cent of salary.

The executive directors' salaries at the start of the 2024 financial year are as follows:

Alan Dunsmore£384,250
Ian Cochrane£342,150
Adam Semple£262,600
Derek Randall£281,300

Benefits and pension

All executive directors will be entitled to a car allowance of £15,000 (Chief Executive Officer: £18,000), a fuel allowance, life insurance cover and medical insurance.

Pension opportunity for the executive directors is 7 per cent of salary with effect from 1 April 2023. This is aligned with the level available to the entire UK workforce.

Rewards for performance in 2024


The maximum opportunity will be 125 per cent of salary for all executive directors in line with the 2023 remuneration policy.

Given the Group's focus on sustainability, an ESG performance metric has been introduced alongside the underlying PBT and safety performance metrics.

Profit performance-based component – 80 per cent

Maximum bonus based on actual underlying PBT versus budget.

The committee believes that the threshold and maximum targets (as a percentage of budget) are appropriately positioned, taking into account levels of growth forecast in the board's strategy review in December 2022 and external analyst consensus.

Underlying PBT % of budget% of award
90 or below
110 or better100

Sliding scale applies between points.

Safety performance-based component – 15 per cent

Group IFR (incident frequency rate) and JSSL AFR (accident frequency rate)†. IFR and AFR are industry-recognised and measurable targets.

The committee believes that the underlying PBT and safety targets are commercially sensitive and therefore are not disclosed at this time. Actual targets will be disclosed in next year's Directors' Remuneration Report.

† Whilst Derek Randall remains in India, the safety component of his bonus will be based on JSSL's AFR.

ESG component — 5 per cent

The ESG metric is based on performance against the Group's key 2024 ESG priorities set out in this annual report.

Restricted share awards

It is the committee's intention to grant restricted share awards at 50 per cent of salary to all executive directors in line with the 2023 remuneration policy.

Awards will vest after three years subject to the satisfaction of performance underpins. Vested awards will be subject to a two year holding period.

The proposed underpins are set out below. The committee believes that the selected underpins reflect an appropriate overall balance and safeguard the financial stability of the business whilst providing sufficient focus on our strategic priorities, ESG performance and regulatory compliance.

  • Financial stability of the business. There is no breach of financial covenants in the Group's principal banking activities.
  • Sustainability of the Group's underlying performance. There is not a material deterioration in the Group's underlying performance which significantly departs from any deterioration across the industrial building and construction sector.
  • Risk management. There is no material failure in risk management resulting in significant reputational damage and/or material financial loss to the Group.
  • Health and safety performance. There is not a material deterioration in health and safety performance and there are no material health and safety failures.
  • ESG performance. Sufficient progress is made against the Group's ESG strategy.

Prior to the vesting of restricted share awards, the committee will also assess whether the Group's underlying financial and operational performance has been satisfactory both on an absolute basis and relative to peers. A number of reference points will be considered, including profit, dividend and shareholder return performance. The committee believes that this is the right approach, rather than setting a quantitative financial underpin, as it enables the Committee to assess the Group's financial and operational performance in the round and take into account the cyclical nature of the industry.

The non-executive directors fees for 2023 and 2024

Fees for the non-executive directors are currently under review. The results of that review will be disclosed in the next year's Directors' remuneration report. The existing fees, that were last reviewed and increased in May 2021, are as follows:

Basic fee for other non-executive directors45,000
Additional fee for SID role7,500
Additional fee for chairman of audit and remuneration committees7,500
Additional fee for workforce engagement director role7,500


This report was approved by the board of directors and signed on behalf of the board.

Alun Griffiths
Chairman of the remuneration committee
14 June 2023