LTIP 2021 performance targets

12 August 2021

RPS, a leading multi-sector global professional services firm, confirms the targets applicable to the 2021 grant of LTIP awards made on 16 March 2021, to John Douglas, Chief Executive and Judith Cottrell, Group Finance Director.

In the 2020 Annual Report on Remuneration, contained within the Annual Report & Accounts the Remuneration Committee confirmed that due to the continuing uncertainty arising out of the COVID-19 pandemic that the Committee would finalise the EPS and Cash Conversion targets following the release of the Interim Results. The targets for the 2021 LTIP cycle are as follows:

 

Performance measure

Weighting

Measurement period

Performance targets

Vesting level (% maximum)

 

Total Shareholder Return relative to the FTSE All Share index

 

50%

 

Three years.

 

Upper Quartile

Median

Below median

 

Between median and upper quartile

 

 

100%

20%

0%

 

Pro rata on a straight-line basis between 20% and 100%

 

Earnings Per Share (measured on a constant currency basis)

 

25%

 

Performance in year 3

 

12p

8p

Below 8p

 

Between 8p and 12p

 

100%

20%

0%

 

Pro-rata on a straight-line basis between 20% and 100%

 

Cash conversion (1)

 

25%

 

Assess performance against the average result of years 2 and 3

 

100%

80%

Below 80%

 

Between 80% and 100%

 

100%

20%

0%

 

Pro rata on a straight-line basis between 20% and 100%

Note:

I.       In 2020, the Company achieved an exceptionally high cash conversion rate of over 200%. This was driven by unwinding of working capital arising from reduced fees, low lock up driven by clients paying early during the pandemic, and COVID-19 schemes allowing deferral of payroll and VAT taxes. We expect these to unwind in 2021 and have experienced some of this in H2 2021. This may result in a negative conversion in 2021, making it very difficult to set a useful year 1 target and we are therefore only setting targets for years 2 and 3

 

Catherine Glickman
Remuneration Committee Chair
12 August 2021

 

ENQUIRIES

David Gormley                                                                                                            01235 438016
Company Secretary

 

Notes to editors

Founded in 1970, RPS is a leading global professional services firm with proven ESG credentials. With c.5,000 consultants and service providers and having operated in 125 countries across six continents - RPS defines, designs, and manages projects that create shared value for a complex, urbanising and resource-scarce world.

Our three thematics - natural resources, urbanisation, and sustainability - are specifically targeted to growth markets where RPS delivers a broad range of services in six sectors:  property, energy, transport, water, defence and government services and resources.  Services provided across RPS' six sectors cover twelve service clusters: project and program management, design and development, water services, environment, advisory and management consulting, exploration and development, planning and approvals, health, safety and risk, oceans and coastal, laboratories, training and communications, creative and digital services.

RPS stands out for its clients by using technology enabled consulting, combined with deep expertise, to solve problems that matter, making them easy to understand.  Making complex easy.

RPS' London Stock Exchange ticker is RPS.L.  For further information, please visit www.rpsgroup.com