Directors' remuneration policy
The current Directors’ remuneration policy was approved by the shareholders of Schroders plc at the 2026 AGM, on 16 April 2026, and is expected to apply for three years from that date. It is set out on pages 72 to 78 of our 2025 Annual Report and Accounts.
Prior to the approval of the new policy at the 2026 AGM, we continued to manage remuneration in line with the Directors’ remuneration policy as detailed in the 2025 Directors Remuneration Report on pages 61 to 89 of our 2025 Annual Report and Accounts. This included the executive Directors’ annual bonus awards in respect of 2025 performance and the LTIP awards granted to them in March 2026. The previous policy in full is available on pages 92 to 98 of our 2022 Annual Report and Accounts.
Our remuneration philosophy
Our vision is to partner with our clients to provide trusted advice and invest in the assets and markets that matter to them, building future prosperity through delivering excellent investment outcomes. Paying our people based on the value we create for our stakeholders will secure our ability to deliver our purpose of creating prosperity together. This is why the remuneration principles underpinning how all our people are paid are centred on creating alignment with our key stakeholder groups.
How our approach to remuneration creates alignment with our key stakeholders
Our remuneration principles | Our executive Director remuneration approach |
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Aligned with clients A proportion of variable remuneration for higher-earning employees and material risk takers is granted as fund awards, which are notional investments in funds managed by the Group. This aligns the interests of employees and clients. |
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Aligned with shareholders A proportion of variable remuneration for higher-earning employees and material risk takers is granted in the form of deferred awards over Schroders shares. This aligns the interests of employees and shareholders. Executive Directors and other members of the Group Executive Committee are required, over time, to acquire and retain a significant holding of Schroders shares or rights to shares. Vested share-based awards from bonuses are unable to be exercised until the requirement has been met. |
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Aligned with financial performance Schroders manages its overall cost base by reference to its cost to income ratio, defined as the ratio of operating expenses to net operating income. Within this framework, compensation expense – including the pool from which any variable pay is funded – is controlled as a component of the overall cost to income ratio. |
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Designed to promote the long-term, sustainable success of the Group Sustainable leadership is key to our business and flows from our long-term outlook. Performance against sustainability goals is considered in the annual compensation review for individuals who have the ability to influence our investment and business operations, ensuring alignment with our commitment to responsible practices. |
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Competitive Employees receive a competitive remuneration package, which is reviewed annually and benchmarked by reference to the external market. This allows us to attract, retain and motivate highly talented people, regardless of gender, age, race, sexual orientation, disability, religion, socio- economic background or other diversity facet. |
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Designed to encourage retention Deferred variable remuneration does not give rise to any immediate entitlement. Awards normally require the participant to be employed continuously by the Group until at least the third anniversary of grant in order to vest in full. |
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