Remuneration & Nomination Committee Report (continued)

Incentive scheme for Executive Board Directors

A non-pensionable short-term discretionary incentive scheme was in place throughout the year. Awards under the scheme are discretionary and are assessed by the Committee and approved by the Board against specific performance criteria, directly linked to the objectives set out in the Strategic Business Plan, that is prepared annually and agreed with the Shareholder.

For 2022, the Balanced Scorecard approach adopted in the previous year was continued, to assess the level of Executive Board Director bonus payable, dependant on the progress made against the aforementioned objectives. The Shareholder has been consulted on the content and design of the Scorecard.

Board Directors’ Remuneration

* Retired 22 December 2022

** Appointed 20 April 2021

*** Appointed 22 September 2022

1Since 2015 the Company has had no employees in the Public Employees Contributory Retirement Scheme (PECRS). The Company is no longer an Admitted Body of the PECRS and there is no ongoing future liability. Furthermore, the Company does not benefit from any other defined benefit scheme.

The Remuneration and Nomination Committee met three times during 2022, details of which are included in the Governance Report.

Company staff pay

The Company targets paying market median levels of remuneration to all staff levels. Employee salaries were also benchmarked locally and pay rises were approved for those with base salaries that were found to be below median levels. Changes to salaries and remuneration payments are effective from 1 January each year.

The 2022 average increase of all salary recommendations was 2.9%. The Committee has noted the inflationary pressures in the local market and this was reflected in the 2023 pay review, with an average increase of 6.9%.

Company staff policies

The Committee developed a revised Pay Policy during the year, to inform employees of how pay increases are determined, as part of our commitment to a transparent total reward philosophy.

The Committee also reviewed and recommended updates to the Employee Handbook, including those required by legislative changes, which were approved by the Board in December 2022.

The Committee also approved a Recruitment and Selection Policy and is finalising a Training and Development Policy and approved a Discretionary Bonus Policy shortly after the year end. In 2023 we will develop a Redundancy Policy, as broadening of our staff related policies, as well as an Anti-Slavery Policy, although our building contracts already have clearly stated requirements in this regard.

Workforce engagement

Following the retirement of Ann Santry on 22 December 2022, who was appointed as the workforce liaison with the Board on 13 May 2021 to facilitate improved communications, Belinda Crosby was appointed by the Board as her successor in December. It was agreed that the position should be regularly rotated with other Board members, in order for staff to get to know Board members, particularly given the planned Board refreshment.

During 2022 the Company carried out its first Staff Engagement Survey, commissioned by Marbral Advisory, which all staff completed. Marbral confirmed that the results were positive and encouraging and comments were played back to the staff team, celebrating highlights and discussing actions for improvement.

Marbral also led a workshop with the whole staff team to identify and develop the organisational values of JDC. The proposed values were reviewed by a small working group composed from a cross-section of the Company, including the Board and the finalised values and associated behavioural statements will be concluded and agreed upon during 2023.

Board Diversity

The Committee recognises that the Company benefits from diversity both at Board level and in the Company as a whole, particularly in respect of gender-balance.

The current profile of the Board as at year end is as follows:

The Board is mindful of its own gender imbalance. The Succession Plan has identified that diversity in all senses must be sought when refreshing the Board over the coming years.

Company Diversity

The composition of our employees by gender is presented below. The Board is pleased to note that the Company’s gender split is equitable.

By order of the Remuneration & Nomination Committee

Nicholas Winsor Chair of the Remuneration & Nomination Committee, XX XXXXX 2023