Value for money

Executive remuneration is set by L&Q’s Governance and Remuneration Committee (GARC) following an independent review, and the terms and conditions include a bonus scheme.

In deciding executive remuneration, the committee considers value for money, current market levels, and the importance of talent retention to provide continuous professional leadership for an organisation that is large and commercially driven to deliver social goals.

“Increases in executive remuneration reflect the significant successes achieved last year.”

Increases in executive remuneration reflect the significant successes achieved last year. These include outperforming key financial and growth targets to deliver a record surplus of £270m (2015: £209m) and complete 2,510 new homes (2015: 2,031). Resident satisfaction also increased to 79.4% (2015: 78%) and L&Q responded positively to the previous chancellor’s July 2015 Budget by driving efficiency savings to achieve operating costs of £3,176 per unit (against a target of £3,455).

Pay increases also reflect the unprecedented scale of L&Q’s future plans, which include the proposed merger with East Thames to create a 90,000-home housing association with an ambition to build 100,000 new homes.

Also, during the early years of austerity, L&Q was very restrained in its approach to pay and reward; as a consequence a number of the executive fell behind when compared with peers. As the business was rebuilt and a sustainable model developed, it was imperative that L&Q redressed the impact of this historic restraint.

Aubrey Adams, chair, L&Q Group board