Page 16 - Shell 2022 Negotiations 20.05.2022

6/ PRIORITY 3: KEY PERFORMANCE INDICATORS

AUK propose that the 2022 KPI’s be used to form the new contract and be reviewed 6 months after

KPI’s Performance Incentive Scheme the start of the new contract duration.

Performance
Margin at Risk
Bonus Fee Existing Contract Model Alternate contract model Alternate contract model The lever is an effective way to drive
From To percentages 2022 2022 change programmes.
2022
£ 5,515,000 £ 5,515,000 Further to this AUK propose an
55% 60% -100% -£ 551,500 -£ 551,500 uplift in the KPI sharing to give the
performance greater emphasis.
60% 65% -80% -£ 441,200 -£ 441,200

65% 70% -70% Margin at Risk -£ 386,050 -£ 386,050

70% 75% -60% -£ 330,900 -£ 330,900

75% 80% -50% -£ 275,750 -£ 275,750
80% 85% -40% -£ 220,600 -£ 220,600
85% 90% -30% -£ 165,450 -£ 165,450
90% 95% -30% -£ 165,450 -£ 165,450
95% 100% -10% -£ 55,150 -£ 55,150
100% 100% 0% £ - £ -
100% 105% 2.50% £ 137,875 4% £ 220,600
105% 110% 2.50% £ 137,875 4% £ 220,600
110% 115% 5% £ 275,750 6.0% £ 330,900
115% 120% 5% £ 275,750 6.0% £ 330,900
120% 125% 7.50% Bonus as % of Fee (cost + margin) £ 413,625 8% £ 441,200
125% 130% 7.50% £ 413,625 8% £ 441,200 Incrementally change scale and pull percentages forward - 5% starter ranging put 12% capped maximum
130% 135% 10% £ 551,500 10% £ 551,500
135% 140% 10% £ 551,500 10% £ 551,500
140% 145% 10% £ 515,500 12% £ 661,800

145% 10% £ 515,500 12% £ 661,800