Associate Handbook 2018

APPENDIX 1

Lockton Companies LLP

Annual Remuneration Bonus Principles

1. Introduction

These principles have been developed and agreed by the Board of Lockton Companies LLP. They replace the bonus principles documented and agreed in October 2011. These principles apply to the award of annual bonuses to Associates. Their objective is to ensure that incentives are fully consistent with the Group’s main strategic objectives and are supportive of its performance based culture. Additionally, it is designed to take account of the regulatory environment within which the business operates and is cognisant of the FCA’s concerns regarding remuneration. Therefore, the policy is designed to ensure that an individual will not be rewarded where they have failed to act in the best interest of the Group, or have acted in a way which prejudices the group’s financial stability.

The principles have been designed to:

reward good performance,



 allocate no bonus or defer a bonus where performance does not justify one, or non- compliance has been evidenced, as detailed within 3.2, and  directly link bonus values to business measures – financial goals, cash collection targets, etc, as detailed within 3.2.

These principles are effective for all applicable associate bonuses payable for the 2013/2014 financial year and future years.

2. Annual Bonus

The aim of our incentives is to provide Associates with remuneration packages that are competitive within our marketplace and encourage a performance based culture, consistent with effective risk management and prudent financial planning.

Typically annual bonuses are paid for the achievement of agreed yearly performance goals set within the annual appraisals either at a personal, business unit or Company wide level.

The award of any bonus in any year is at the Company’s sole discretion. Any award is only paid to employees who are in service and not under notice on the payment date.

3. Annual Bonus Payments Schedule

3.1 Annual bonus payments are usually made in July following the end of the preceding fiscal year (30 th April).