Section 430(2B) Companies Act 2006 Statement
The following information sets out the disclosure required by section 430(2B) of the Companies Act 2006 in relation to Peter Harrison stepping down as a Director of Schroders plc, effective 8 November 2024.
Peter Harrison will remain as Group Chief Executive until 8 November 2024, at which point he will step down from the Board.
Per the terms of the Directors' Remuneration Policy, Mr Harrison will continue to receive his annual salary of £500,000 plus existing retirement and wider benefits through to his departure date of 31 December 2024 and will receive payment in lieu of notice of £92,949 for the portion of his notice period remaining at that point. Certain benefits (for example medical or life insurance) will continue until the end of the normal cover period.
Mr Harrison will be eligible to be considered for an annual bonus award for his performance as an executive Director through 8 November 2024 with the total compensation cap of £9,000,000 pro-rated to reflect the period served as an Executive Director. Per the terms of the Directors' Remuneration Policy, a proportion of the bonus award may be deferred into an award over shares. Mr Harrison will also be eligible to be considered for an annual incentive award for the period between stepping down as an Executive Director and his departure date based on his continued contribution to the firm's strategic priorities and an effective transition of responsibilities, with any award to be disclosed in the 2024 Annual Report and Accounts. Mr Harrison will not be eligible for the grant of the 2025 long-term incentive award.
Deferred bonus awards previously granted to Mr Harrison will continue to vest based on the terms and conditions under which they were granted, and his 2022, 2023 and 2024 long-term incentive award grants will be pro-rated for the time elapsed with the firm during the performance period. Final vesting of the long-term incentive awards will be determined by the Remuneration Committee at the conclusion of the performance period upon assessment of the achievement of the conditions set out in each award's scorecard. Awards will vest subject to time pro-rating to the end of Mr Harrison's employment, with vesting outcomes to be disclosed in future Annual Report and Accounts. Mr Harrison waived entitlement to his 2021 long-term incentive award.
Mr Harrison will continue to comply with Schroders' minimum shareholding requirements and, after the end of his employment, will comply with the post-cessation shareholding requirements.
Mr Harrison will be entitled to a capped contribution to legal fees of £36,000 (plus VAT).