SSP Group PLC Interim Statement (0806X)

TIDMSSPG

RNS Number : 0806X

SSP Group PLC

25 August 2020

LEI: 213800QGNIWTXFMENJ24

25 August 2020

SSP Group plc

(the "Company")

Interim Statement

 
 
              In line with Provision 4 of the 2018 UK Corporate Governance 
              Code (the "2018 Code"), the Board has released this statement 
              to provide an update to shareholders on the actions taken 
              following the outcome of Resolution 2: Approval of the Remuneration 
              Report at the 2020 AGM. 
              Resolution 2: Approval of the Remuneration Report 
              Ahead of the 2020 AGM the Remuneration Committee Chair wrote 
              to shareholders making up 75% of our shareholder base in 
              order to understand their views of executive remuneration 
              at SSP Group. This was followed by meetings with shareholders 
              representing 64% of our shareholder base. The Remuneration 
              Committee appreciated the feedback received and the level 
              of engagement from our shareholders. Following these consultations 
              we made a number of improvements to our executive remuneration 
              framework, including: 
               *    the introduction of the mandatory deferral of at 
                    least 33% of any bonus; 
 
 
               *    increasing our minimum shareholding requirements to 
                    250% of salary and 200% of salary for the Group CEO 
                    and Group CFO respectively; 
 
 
               *    the introduction of a post-employment shareholding 
                    requirement; 
 
 
               *    introducing non-financial objectives into the Group 
                    CEO's annual bonus by basing 20% of total bonus 
                    opportunity on objectives linked to the Group's 
                    strategic goals; and 
 
 
               *    improved disclosure of our annual bonus targets. 
 
 
              Following the 2020 AGM outcome in respect of the Remuneration 
              Report, the Board sought further feedback. The Committee 
              understood that the key areas of concern were the legacy 
              leaving arrangements for Kate Swann, our former Group CEO, 
              and the increased salary and Performance Share Plan opportunity 
              for Jonathan Davies, our Group CFO, following the material 
              increase to his remit and responsibilities in early 2019. 
              The background to the leaving arrangements for Kate Swann 
              was very specific to the circumstances of the timing of her 
              departure and handover to the new Group CEO. However the 
              Committee recognises shareholders' concerns on these matters. 
              During the year SSP, as a travel-based food retailer, has 
              been significantly impacted by COVID-19. In response, the 
              Board has taken all available actions to protect profit and 
              preserve cash, whilst working closely with our clients and 
              other stakeholders to maintain appropriate service levels. 
              These actions included significant salary reductions across 
              all senior management, the Group Executive and Group Board. 
              The Committee intends to continue engagement with shareholders 
              over the coming months regarding our approach to executive 
              pay in the current environment and, in line with the normal 
              three year cycle, our review of the Directors' Remuneration 
              Policy. 
              In line with the 2018 Code, a final summary of the above 
              matter will be included in the 2020 Annual Report. 
              Approved by SSP Group plc 
              25 August 2020 
 
              For further information contact: 
              Helen Byrne, General Counsel & Company Secretary, SSP Group 
              plc 
              Email: [e-mail] 
              Investor and analyst enquiries 
              Sarah John, Director of Corporate Affairs, SSP Group plc 
              Email: [e-mail] 
              About SSP 
              SSP is a leading operator of food and beverage concessions 
              in travel locations worldwide, operating restaurants, bars, 
              cafés, food courts, lounges and convenience stores in 
              airports, train stations, motorway service stations and other 
              leisure locations. 
              Prior to the onset of COVID--19, during 2019 SSP Group employed 
              c 40,000 colleagues (on average) around the world, serving 
              around one and a half million customers every day at approximately 
              180 airports and 300 rail stations in 36 countries around 
              the world and operated more than 550 international, national 
              and local brands across our c. 2,800 units. www.foodtravelexperts.com 
              . 
 

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August 25, 2020 09:00 ET (13:00 GMT)