Directors’ Remuneration Policy
Our policy for Directors' remuneration is set out in the Directors' Remuneration Policy. This was approved at the 2020 AGM. It is intended that the policy will apply for three years from the 2020 AGM; if any amendments need to be made to the policy within that timeframe, it will first be presented to be voted upon by shareholders.
Our 2020 Directors' Remuneration Report can be viewed here: Directors' Remuneration Report.
2021/23 Long Term Incentive Plan (LTIP) cycle - Cash flow performance measure and targets
In view of the uncertain forecasting environment in 2021, the 2021/23 LTIP cycle cash flow targets were not included in the 2020 Directors’ Remuneration Report, and it was noted on page 109 of the 2020 Annual Report that details would be published on the IHG corporate website in advance of the May 2021 Annual General Meeting.
The Remuneration Committee has agreed the following cash flow targets for the 2021/23 LTIP cycle: 2021/23 cash flow targets.
The remainder of the measures and targets for this cycle are as outlined on page 109 of the 2020 Annual Report. As stated in the report, target-setting remains challenging in 2021 due to the continued uncertainty over the pace of recovery for the industry. Cash flow was significantly reduced in 2020 relative to previous years as a result of the impact of the pandemic, and the 2021/23 cycle targets set out above have been determined in the context of an industry that is not expected to return to 2019 levels of RevPAR* until beyond 2023.
The Committee will continue to use its established formal framework for determining whether to exercise discretion in relation to formulaic outcomes, and will continue to monitor performance under that framework. Performance and vesting outcomes and any use of discretion will be fully disclosed and explained in the relevant Directors’ Remuneration Report.
*revenue per available room