Reece (ASX:REH) announced a comprehensive redesign of its remuneration framework for top-tier leadership.
The new structure, spearheaded by Remuneration Committee Chair Jacqueline Chow, represents a fundamental shift away from immediate payouts toward sustained, long-term value creation for shareholders.
The group is introducing a substantial multi-year long-term incentive grant for the 2026 financial year.
The grant is valued at five times the annual grant amount and is split equally between performance rights and options.
The pivot is designed to recognise the increasing complexity and scale of Reece’s US operations while ensuring the Chair, CEO, and Group Managing Director remain tethered to the company’s performance over the next several years.
Performance rights will only become eligible for vesting following the FY30 results, contingent on meeting targets for earnings per share compound annual growth rate and average return on capital employed.
Meanwhile, the options are scheduled to vest in three equal tranches between FY28 and FY30, provided the company meets a total shareholder return gateway condition.
Reece aims to retain elite talent and ensure the executive team is fully committed to delivering the ambitious goals of its 2030 roadmap.