JLT top team to get pay boost
Base salary increase for JLT top team
JLT chief executive Dominic Burke (pictured) and the company’s two other executive directors will all get pay increases on 1 April 2017.
Burke’s base salary will increase by 3.5% to £766,000 (2016: £740,000), while deputy chief executive mark Drummond Brady and chief financial officer Charles Rozes will both get 7% base pay rises.
This means Drummond Brady’s base salary will increase to £450,000 from £420,000 in April and Rozes’ will increase to £455,000 from £425,000.
None of the three members of the JLT top team received a rise in base pay in 2016.
The news comes as Burke took a 13% cut in his total 2016 pay package, which includes bonuses and long-term incentive payments (LTIPs) as well as base salary.
Burke was paid a total of £2.5m in 2016, down from £2.9m in 2015. The main cause for the fall was a sharp drop in Burke’s LTIP payment to £477,000 in 2016 from £1.4m in 2015.
Drummond Brady’s total pay also dipped slightly to £1m from £1.1m, again caused by a reduction in LTIP payments to £125,000 from £361,000.
The 2016 LTIP payments relate to JLT’s earnings per share (EPS) growth across 2014, 2015 and 2016. If EPS growth had been less than 6% a year for those three years, they would have got no LTIP payment. Growth of 6% could have earned them 20% of the maximum possible payout, while 12% EPS growth a year over the three years would have earned them the full amount.
Basied on the actual EPS growth across the three years, the executives’ 2016 LTIP payment was 21.5% of the maximum they could have received.
Rozes’ total 2016 pay jumped to £1.3m from £572m in 2015 but this was because he joined the board in September 2015 and so was not paid for a full year in 2015.