Our remuneration policy is designed to attract, motivate, retain and reward employees regardless of gender, ethnicity, age, disability or any other protected characteristic.
Our philosophy is to reward individual contribution, as demonstrated by the delivery of long-term sustainable results that are aligned with our business strategy, values, behaviours and which serve the best interests of our clients and shareholders while enabling the business to grow to its potential.
Through focusing on long term awards, our incentive pay strategies encourage employees to act like long term shareholders and support our performance and partnership culture to create a sustainable business, discouraging excessive or concentrated risk taking and avoids conflicts of interest
Individual and organisational performance is transparently and rigorously assessed against a combination of financial (multi-year) and non-financial targets in order to determine appropriate total compensation that will attract and retain our key talent.
These principles form the basis of our approach to performance and behaviour-linked total compensation. The principles of our remuneration policies, procedures and practices are:
Regulation requires the Company to identify the categories of staff whose professional activities have a material impact on the risk profile of the Company.
The identified staff for the Company are identified in accordance with the Company Remuneration Policy.
The Remuneration Committee is constituted as a Committee of the Board of Hermes Fund Managers Limited. Membership of the Remuneration Committee is formed by the Chairman of Company and other Directors (both Executive and Non-Executive) who are appointed in line with the business needs of the organisation.
The UCITS Directive requires self-managed investment companies that are significant in terms of their size, their internal organisation and the nature, scope and complexity of their activities to establish a remuneration committee. Having considered these criteria, the Company has determined to establish a separate remuneration committee for the UCITS entity.
On an annual basis the Board will review the terms of this Remuneration Policy and assess whether its overall remuneration system operates as intended and is compliant with the obligations on remuneration policy as set out in the AIFMD and the UCITS Directive. The Remuneration Policy will be updated by the Board as and when required.
The effective date of this Policy is 2019.