S S TR FY 2024 REMUNERATION APPROACH Broader workforce reward TR A FY 2024 executive director salaries Passionate, motivated and professional people are critical to the A TE The Committee reviewed the CEO and CFO’s salaries for 2024 and success of Aston Martin and, to attract and retain the best talent TE G G I I C decided to apply an increase of 3%, taking their salaries to £925,000 available, our pay and benefits must be competitive. When considering C R and £485,000 respectively from 1 April 2024. This level of increase the remuneration of the executive directors and executive committee, R E E P is lower than the 2024 average pay increases that will apply for the Committee considers remuneration across the whole Company. P O O R employees across the workforce. The Committee was kept informed of the key areas of focus around R T Aston Martin’s people during 2023. The leadership team continued to T FY 2024 annual bonus demonstrate their commitment to improving workplace engagement G The Committee has decided to broadly maintain the existing approach and culture, setting the goal to secure accreditation as a Great Place G O to the annual bonus. However, for 2024, we are making some important to Work® by 2025. Significant investment into our facilities, culture O VE changes to the Group KPI scorecard to incorporate an additional and organisation could be seen by our employees during 2023, and VE R R NAN non-financial performance element focused on ESG. detailed information on our People and progress during the year is set NAN out on page 50. C C E We have successfully launched and continue to embed and develop E our Sustainability strategy, Racing. Green., across Aston Martin. We On workforce reward more specifically, during the year the Committee strongly believe that an increased focus on ESG performance will help considered information on the policies and practices which are in F F I to improve operational excellence and drive innovation across the place throughout the Company. In particular, during 2023, we I NAN Company. Our ESG ambitions are central to our business and NAN successfully launched our first all-employee share plan, “Aston Martin C sustainability strategy, and are of critical importance to Aston Martin Sharing. Success.”, awarding 425 free shares to 2,541 employees. The C IAL as we focus on developing our culture and improving engagement IAL 2023 free share awards were incredibly well-received, with significant S across the workplace. The Committee believes that now is the right engagement from participants, giving everyone the chance to share in S T T A time for us to take our first steps to linking our incentives to ESG the future success of the Company. An annual award of free shares will A T T E measures aligned with our strategy. be made to all employees once again in 2024, which we believe will E M M E continue to build engagement across the workforce and a culture E N N T The 2024 Group KPI scorecard will therefore include an 80% weighting where our employees feel and behave like owners. T S S on financial measures, down from 85% last year (including a 50% weighting on Adjusted EBITDA, 20% on Free Cash Flow and 10% on In respect of the 2023 bonus, the Committee noted that the Group KPI F F U volumes). The non-financial element will continue to focus on our scorecard applied to bonuses for all employees and that the outcome U R R T Quality performance (with a 15% weighting) and the new ESG element, at 34% of maximum (68% of target) was considered a positive result, T H H E weighted at 5%, will focus on achieving metrics linked to the safety recognising how hard the team had worked and the significant E R R INF of our people. Whilst the Committee recognises that a weighting of continued progress made on the business plan and achievements INF 5% is relatively low compared to market practice, we believe it is during 2023, including the DB12 launch. OR appropriate as we continue to embed our Racing. Green. strategy OR M throughout the business and to also ensure focus is maintained on our We also discussed our approach to, and results of, Aston Martin’s M A A T critical financial and quality priorities. Looking ahead, we will review the Gender Pay Gap (GPG) reporting. Our aim is to foster a culture where T I I ON weighting and type of ESG measures in our incentive plans, including everybody feels valued, motivated and rewarded to achieve their best ON whether they should be incorporated in the annual bonus and LTIP, as work – detailed information on our People, including our Gender Pay we further develop and embed Racing. Green. within the organisation. Gap figures and ED&I strategy, can be found on pages 50 to 53. There is also information on the Board’s engagement with our workforce in There is no change to the bonus opportunity for the executive the People section and with our other stakeholders in the Governance directors. Full details of the 2024 annual bonus approach are set out section on page 26. on page 113. I would like to thank shareholders for the feedback and views shared FY 2024 LTIP with the Committee and for your continued support. If you have The Committee has decided to maintain the existing approach to the any questions on any element of this report, please email LTIP, with updated Adjusted EBITDA targets for 2024 awards [email protected] in the first instance and I hope (accounting for 80%) which reflect the new three-year period we can rely on your support at our forthcoming AGM. (1 January 2024 to 31 December 2026) of the business plan. The remaining 20% will payout based on relative TSR performance. There DR. ANNE STEVENS is no change to the LTIP opportunity for the executive directors, and CHAIR, REMUNERATION COMMITTEE awards will be subject to a 2-year post vesting holding period, in-line 27 February 2024 with our 2022 remuneration policy. Full details of the 2024 LTIP approach are set out on page 115. ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 109