London Stock Exchange – AGM 21 April 2020
Item 3: Remuneration report
Total remuneration is considered to be positioned above expectations given the Companyns size and scale, its sector and its performance. We have significant concerns regarding the measurability of the "strategic deliverables" which call into question alignment with the performance for 40% of the bonus. The 2019 bonus payout of 169% exceeds our limit of 150% of the salary.
Item 4: Remuneration policy
The maximum variable remuneration exceeds 300% of the base salary: the short-term and long-term incentive potential is 525% and may increase to 625% in exceptional circumstances. The proposed policy does not guarantee that the discretionary or qualitative, nonquantifiable criteria of bonus will not exceed 20% of the annual bonus.
Item 24: Share buyback
The LTI is overly reliant on Adjusted EPS, which is not considered appropriate as it can potentially be influenced by executives. The EPS accounts for 50% of LTI until 2019 awards and 60% of LTI after 2020 (corresponding to 180% of base salary) and raises concerns.
London Stock Exchange Group is a global markets infrastructure business based in the United Kingdom. Co's operating segments include: Information Services, which provides a range of information and data products including indexes and benchmarks; Post Trade Services LCH, which provides clearing services through which counterparty risk is mitigated across multiple asset classes; Capital Markets, provides access to capital for domestic and international businesses and electronic platforms for secondary market trading of equities, bonds and derivatives; and Group Technology, which provides secure technologies to customers that require performance at high levels of availability and throughput.
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