HGPE LLP Remuneration Policy

1. Hermes GPE LLP (“the Company”) Remuneration Policy

Our remuneration policy is designed to attract, motivate, retain and reward employees regardless of gender, ethnicity, age, disability, gender reassignment, race, marital or civil partnership status, pregnancy or maternity, religion or belief, or sexual orientation.

Our philosophy is to reward individual contribution, as demonstrated by the delivery of sustainable results that are aligned with our business strategy, values and, behaviours and which serve the best interests of our clients, their investors and our shareholder while enabling the business to profitably grow to its potential.

Through focusing on long term awards, our incentive pay strategies encourage all employees to act like long term shareowners, create sustainable wealth for our clients and their investors and support our responsible performance culture to create a sustainable business, discouraging excessive or concentrated risk taking and avoid conflicts of interest.

Individual and organisational performance is transparently and rigorously assessed against a combination of financial (multi-year) and non-financial targets to determine appropriate total compensation that will attract and retain our key talent.

2. Reward Strategy Principles

These principles form the basis of our approach to performance and behaviour-linked compensation. The principles of our remuneration policies, procedures and practices are:

  • To encourage employees to deliver on the business’ purpose of stainable wealth creation that enriches investors, society and the environment.
  • To be aligned with business strategy, objectives, values and long-term interests of Company and its clients and their investors as reflected in the Company Pledge.
  • To provide competitive total remuneration potential, designed to attract, retain, motivate and reward employees that deliver outstanding long-term performance and corporate behaviours.
  • To promote sound and effective risk management.
  • To ensure remuneration is linked to investment, business, personal performance and corporate behaviours for all employees, and where appropriate measured over the short, medium and long term.
  • To differentiate and reward strong performance and demonstration of behaviours and to proactively manage poor performance and behaviours not aligned to our values.
  • To deliver reward programs which are transparent, simple to administer and affordable.
  • To deliver compensation and benefit strategies which have the oversight and approval of our HGPE LLP Governing Body.

4. Identified staff

Regulation requires the Company to identify the employees 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.

5. HGPE LLP Governing Body

The Governing Body is formed of 4 individuals, one of whom acts as the Chair. Decisions are taken by a majority of the members in attendance at a meeting.

No individual is present in discussion of their own remuneration to ensure that all decisions are a fair representation of individuals’ performance and that there is no conflict of interest.

6. Annual Review

On an annual basis the HGPE LLP Governing Body review this Policy and assess whether its overall remuneration framework operates as intended and is compliant with the obligations on remuneration policy as set out in the Alternative Investment Fund Managers Directive (“AIFMD”), the Investment Firms Prudential Regime (“IFPR”) and the Markets in Financial Instruments Directive (“MiFID II”). The Remuneration Policy will be updated by the HGPE LLP Governing Body as and when required.

7. Effective Date

The effective date of this Policy is 2023.