Corporate governance report Remuneration continued Directors’ Remuneration Policy 2020 THE POLICY REPORT Future policy table The following table sets out the structure of remuneration for Directors of the Company under the Policy which was approved by shareholders at the AGM on 17 November 2020 with over 99% of votes in favour of it. This Policy will remain in force until the AGM in 2023. The Policy can be viewed in the 2020 Annual Report which is available on the Company’s website at https://corporate.dunelm.com/investors/reports-and-presentations/ BASE SALARY PURPOSE AND LINK • Fixed remuneration for the role. TO STRATEGIC • To attract and retain the high-calibre talent necessary to develop and deliver the business strategy. OBJECTIVES • Reflects the size and scope of the Executive Director’s responsibilities. OPERATION • Normally paid monthly. • Base level set in the context of: – Pay for similar roles in companies of similar size and complexity in the relevant market. – Scale and complexity of the role. • Should comprise a minority of potential remuneration. MAXIMUM • Reviewed annually, with percentage increases in line with the Company-wide review unless other circumstances OPPORTUNITY apply, such as: – A significant change in the size, scale or complexity of the role or of the Company’s business. – Development and performance in role (for example, on a new appointment, base salary might be initially set at a lower level with the intention of increasing over time). • The Committee does not consider it to be approriate to set a monetary limit on the maximum base salary thatp may be paid to an Executive Director within the terms ofthis policy. PERFORMANCE • None, although performance of the individual is considered at the annual salary review. METRICS • No recovery provisions apply to base salary. RETIREMENT BENEFITS PURPOSE AND LINK • To provide a competitive post-retirement benefit. TO STRATEGIC • To attract and retain the high-calibre talent necessary to develop and deliver the business strategy. OBJECTIVES OPERATION • Contribution equivalent to a percentage of base salary made to a defined contribution plan or paid as a cash allowance. • No element other than base salary is pensionable. MAXIMUM • For any Executive Director appointed before 1 July 2020, 8% of salary. OPPORTUNITY • For any Executive Director appointed on or after 1 July 2020, an amount as a percentage of base salary not exceeding the average paid in respect of the wider workforce (currently 3%). – Please note that from FY22 the incumbent Executive Directors have agreed to reduce their entitlement to the workforce average. PERFORMANCE • None. METRICS • No recovery provisions apply to retirement benefits. 142DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021