Annual Report & Accounts 2017/18

82 Nomination and Remuneration Committee The Nomination and Remuneration Committee determines, on behalf of the Board, and subject to approval by the Shareholder, the NI Water policy on the remuneration of Executive Directors and Executives. Only independent Non-Executive Directors may serve on the Committee. The Committee met twice in the year. Board appointments and diversity The Nomination and Remuneration Committee has responsibility for considering the size, structure and composition of the Board, retirements and appointments of additional and replacement Directors, succession planning and making recommendations to the Board and Shareholder so as to maintain an appropriate balance of skills and experience on the Board. This includes consideration of gender and ethnic diversity. The Shareholder appoints the Chair and all other Non-Executive Board members and participates in and approves the appointment of all executive Directors to the Board. Remuneration policy NI Water’s policy on remuneration of Executive Directors and Executives is to attract, retain and motivate the best people, recognising the input they have to the ongoing success of the business. Consistent with this policy, and in accordance with Article 62 of the Water and Sewerage Services (Northern Ireland) Order 2006, the benefit packages awarded by NI Water to Executive Directors and Executives are intended to be competitive, and under the policy should comprise base salary, and a discretionary performance related bonus designed to incentivise Directors and align their interests with those of the Shareholder. The remuneration consists of the following elements: Base salaries Under the policy, base salaries for each Executive Director and Executive should be reviewed annually taking into account inflation. Notwithstanding this policy NI Water Limited has been subject to public sector pay policy in 2017/18 as a result of the Northern Ireland Executive’s decision to apply the UK Government’s pay policy for public sector staff. Annual bonus There was no bonus scheme in 2017/18 for Executive Directors and Senior Managers. Benefits in kind The monetary value of benefits in kind covers any benefits provided by the employer and treated by HM Revenue and Customs as a taxable emolument. Group Companies Apart from NI Water Limited, the directors of the other companies in the Group did not receive any emoluments for their services. Non-Executive Directors’ remuneration A fee of £850 10 per day is payable to the Chairman and £765 11 per day to the Non- Executive Directors. The higher fee for the Chairman reflects the additional responsibilities of that role. Further details on the attendance by the Non-Executive Directors are provided on page 73. Directors’ employment contracts The Executive Directors covered by this report hold appointments which are open ended. The policy relating to notice periods and termination payments is contained within their service agreements and/or NI Water’s Employee Handbook. The Non-Executive Directors covered by this report hold appointments which last for four years and the DfI Minister has the option of re-appointing for a further four years after consideration of a performance assessment. NI Water Annual Report and Accounts 2017/18 Directors’ remuneration report 10 The fee per day payable from 1 August 2017 is £850 for up to four days per month, increasing to £1,020 per day for a maximum of five additional days. 11 The fee per day payable from 1 August 2017 is £765 for up to two days per month, remaining at £765 per day for a maximum of four wadditional days. Governance