Grosvenor Investment Management Limited
PILLAR 3 REMUNERATION DISCLOSURES FOR GIML FOR THE YEAR ENDED 31 DECEMBER 2020
- Decision-making process for remuneration policy
Grosvenor Investment Management Limited ("GIML") is a wholly owned subsidiary of Grosvenor Europe Limited ("GEurope") and is categorised by the Financial Conduct Authority ("FCA") as a BIPRU firm and a Collective Portfolio Management Investment firm under the Alternative Investment Fund Managers Directive ("AIFMD").
The remuneration policy for GIML and GEurope staff is determined by the GEurope HR Committee which meets regularly to ensure that GEurope remuneration packages are competitive and designed to attract, retain and motivate staff of an appropriate calibre. Within the authority delegated by the Board of Grosvenor Group Limited (“GGL”), reporting to the GEurope Board, the GEurope HR Committee is responsible for approving remuneration policy and in doing so takes into account the pay and conditions across GEurope.
This includes the terms of bonus plans, long-term incentive plans and the individual remuneration packages of senior management and other senior GEurope employees, including all those in positions of significant influence and those having a material impact on our risk profile (Code Staff).
There were three meetings of the GEurope Remuneration Committee during 2020. The terms of reference of the Committee are available on written request.
The members of the HR Committee throughout 2020 were Mark Preston (Grosvenor Executive Trustee/Group CEO and GEurope Non-Executive Director), Jonathan Lane (GEurope Non-Executive Director and GEurope Board Chair) and Patricia Abril (GEurope Non-Executive Director and GEurope HR Committee Chair).
The annual pay review and bonus proposals made to the Committee were prepared by GEurope’s Human Resources function with advice from Grosvenor’s Reward Team. During the year, the GEurope Chief Executive Officer and GEurope HR team provided regular briefings to the GEurope HR Committee which also received input from the Grosvenor Estate HR Director, Camilla Faith. No individual is involved in decisions relating to his or her own remuneration.
- Role of the relevant stakeholders
The GEurope HR Committee takes full account of the company’s strategic objectives in setting remuneration policy and is mindful of its duties to shareholders and other stakeholders. The GEurope HR Committee seeks to preserve shareholder value by ensuring the successful retention, recruitment and motivation of employees.
- Code Staff criteria
The following groups of employees have been identified as meeting the criteria for Code Staff:
- A person who performs a significant influence function for Grosvenor Investment Management Limited (“GIML”), the FCA registered entity within GEurope.
- A Senior Manager of GIML - unless already registered as a person who performs a Significant Influence Function (a “SIF”), an individual who is head of, or has responsibility for the management and supervision for a significant business line or business unit/team within GIML.
- A Senior Manager of GIML - unless already registered as a SIF, an individual who is a head of a control function which has a material impact on the GIML's risk profile.
- Risk-takers of GIML - all staff whose professional activities could have a material impact on GIML's risk profile.
The categories above include all senior level management within GIML.
- The link between pay and performance for Code Staff.
Remuneration is made up of fixed pay (i.e. salary and benefits) and performance-related pay. Performance related pay is designed to reflect success or failure against a range of targets.
For 2020, the principle GEurope bonus was paid in cash. Some senior members of GIML are offered the opportunity to voluntarily defer their cash bonus for a minimum period of two years, at risk of movements of Grosvenor Europe Total Return. The discretionary bonus was based on company and individual performance.
In addition, certain individuals in GIML (including certain Code Staff) were eligible to receive a long-term cash incentive.
- Aggregate remuneration cost for Code Staff by business area
In 2020, 4 individuals were either categorised as Senior Management or Other Risk Taker (i.e. defined as Code Staff).
For clarity, GEurope has only one business area therefore we have chosen not to split the aggregated remuneration data into senior manager/other for data protection reasons given the small number of staff involved.
Aggregate remuneration expenditure was as follows:
Code Staff (4): £1.04M (of which £0.18M was variable remuneration)