Severn Trent PLC - Proxy report 18/07/2018
Item 3: Approve the Remuneration Policy
The structure is satisfactory. The maximum bonus, though increased, is still within ECGS guidelines as is the use of qualitative criteria. Incentive pay is more weighted toward the long term and total incentive pay is not excessive given the market. The increased holding period for the LTIP and the increased shareholding requirements will serve to further align executives' interests with the long-term shareholder interests.
Item 4: Amend the LTI
While the use of only one performance metric does not meet market practice and the peer group to which RoRE is compared is not disclosed, the maximum incentive pay does not exceed ECGS guidelines and the proposed amendment to the LTIP, an
increased holding period, will increase the alignment of the plan with long-term shareholder interests.
Items 14 and 15: Appoint the Auditor and authorise the Board to determine their remuneration
Non-audit fees are considered excessive on a three year aggregate basis and may undermine auditor independence.
Severn Trent is engaged in providing water and waste water services and developing renewable energy solutions through Co.'s businesses: Severn Trent Water and Dee Valley Water (together Co.'s Regulated Water and Waste Water business), and Severn Trent Business Services. Co. is organized into two main business segments: Regulated Water and Waste Water includes the wholesale water and waste water activities of Co.'s subsidiary, Severn Trent Water Limited, its retail services to domestic customers, and Dee Valley Water; and Business Services, which includes Co.'s Operating Services businesses in the U.S., the U.K. and Ireland and Co.'s Renewable Energy business.
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