Looking to buy or rent?

Visit rightmove.co.uk

Remuneration policy

Introduction

In 2016, the Committee conducted a full review of the executive Remuneration Policy, which was last approved by shareholders in 2014. 

The Committee consulted the Company’s major shareholders for their views on the new policy, including salary proposals for 2017. Our shareholders were overwhelmingly supportive of the proposed changes, which were subsequently approved at the AGM on 9 May 2017. 

Remuneration Policy Report

This part of the Directors' Remuneration Report sets out the Remuneration Policy for the Company and has been prepared in accordance with the Companies Act 2006, the Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment) Regulations 2013 (together the Act) and the 2014 UK Corporate Governance Code (the Code).

The policy has been developed after taking into account Rightmove’s pay philosophy that our executives should be rewarded with demonstrably lower than market base salaries and benefits and higher than market equity rewards contingent upon the achievement of challenging performance targets in accordance with the 'best practice' principles set out in the Code and the views of our major shareholders.

The key principles of the Committee's policy are unchanged and are as follows: 

  • Remuneration arrangements should be simple to explain, understand and administer.
  • Remuneration arrangements should be designed to provide executive directors with the opportunity to receive a share in the future growth and development of the Group which is regarded as fair by both other employees and shareholders.  This approach should allow the Company to attract and retain the dynamic, self-motivated individuals who are critical to the success of the business.
  • Executive directors should have below market levels of base salary, minimal benefits (which are made available on the same basis to all Rightmove employees), but with above market levels of variable pay potential. This arrangement is designed to align the interests of the executive directors with the interests of shareholders and to reflect the dynamic, performance driven culture of the Group. The Company will generally review market levels of remuneration for executive directors with the assistance of external, independent remuneration consultants and consult shareholders on remuneration policy at least every three years.
  • Executive director remuneration should normally be reviewed against the market every three years, further changes to remuneration for the current executives should be made infrequently.  Annual pay reviews for executive directors in intervening years should, in most instances, be directly linked to the policies applied to all employees, specifically with regard to cost of living rises in base salary and changes in benefits.
  • Executive directors should be principally rewarded for the overall success of the business for which they have collective responsibility. The Group has key short-term and medium to long-term goals and executive directors should be incentivised against these goals.
  • Executive directors should not be able to gain significantly from short-term successes, which subsequently prove not to be consistent with growing the overall value of the business. Hence a majority of any bonus payable in relation to short-term strategic goals is required to be taken in the form of shares in the Company which are deferred for a further two years after the bonus target has been achieved.

The key elements of the Remuneration Policy are summarised in ‘Remuneration at a glance’ and detailed in the Remuneration Policy Report.

 

Click here to read Remuneration at a Glance

Click here to read Remuneration Policy

 

 

Peter Williams, Non-Executive Director

 

S430(2B) Statement 9th May 2017