Associate Handbook 2018

3.2 The bonus review process will operate as follows:

Each individual business area will present a divisional bonus proposal at the appropriate June Remuneration Committee (RemCo) meeting for payment due in July.

The proposal will be expected to cover:

 The value of revenue booked, expenses incurred, and resultant profitability for the fiscal year (all relative to budget).  The cash collection profile for the fiscal year. This will include (but not be limited to) brokerage, fees, WTA’s, and any other income that has been booked within the year to which the bonus applies and remains uncollected. Uncollected items will include those items where a bad debt provision has been put in place together with items where the payment is not yet due.  Performance for the year on key operational compliance matters e.g E&O’s, file audit and assurance output, Best Practice management information on compliance performance including appraisal completion.  The proposed bonus allocation for the area and each associate based on the above performance and linked to the scoring allocated within the most recent appraisal.  Any recommendations for deferred components linked to uncompleted appraisals, uncollected income booked within the fiscal year or other compliance matters. The deferred component may range between 0% and 100% and will be subject to the discretion of the remuneration committee. Individual bonus awards may also be deferred or adjusted to reflect any costs incurred by the Company as a result of an individual’s actions e.g. costs incurred dealing with restrictive covenant issue. It is recognised that the Group may be entitled to claw back any bonus paid on the basis of information which subsequently turns out to have been falsified or exaggerated, or income which has been recognised inappropriately (other than where there is genuine mistake), or in other specified events such as fraud, deception, or dishonesty or any other matters which could be considered to be a material breach of the individual’s employment contract. The claw back will solely relate to the bonus paid in the financial year in which the particular issue occurred.

This right is without prejudice to any other contractual remedies which the Group may have against the individual.

Board of the LLP – September 2013