Corporate governance report Remuneration continued LTIP For the LTIP, at least 75% of the award will be based on one or more financial measures, which will include EPS. GROUP KPI The Remuneration Committee considers EPS to be the most appropriate measure for medium-term performance, aligned with our growth ambitions and continuing to win market share. EPS growth is also a prime driver of shareholder value creation. The use of EPS for Dunelm’s LTIP is also considered appropriate because of the low level of leverage in the business and is the main driver of cash generation. Capital expenditure controls exercised by the Board are sufficiently rigorous to avoid EPS accretion by means of ineffective investment of capital. Any part of the award not based on financial measures will be based on strategic measures, which may include environmental, social and governance measures. The number of shares comprised in an award or the performance target which applies may be adjusted by the Remuneration Committee in accordance with the plan rules if justified by the circumstances, for example, if there were a major capital transaction. Any amendment and the reason for it would be fully disclosed. A copy of the plan rules is available from the Company Secretary on request. ILLUSTRATIVE PERFORMANCE SCENARIOS The following graphs set out what Nick Wilkinson and Laura Carr, the other Executive Directors in office at the date of this report, could earn in FY22 under the following scenarios: Nick Wilkinson* Laura Carr* 1,996.0 3,500 2,000 18% 3,120.6 3,000 19% 1,639.0 2,538.6 44% 36% 2,500 1,500 45% 37% 2,000 984.0 1,519.6 1,000 1,500 36% 30% 25% 38% 29% 23% 1,000 500 429.0 20% 646.6 19% 500 100% 43% 26% 21% 100% 44% 26% 21% 0 0 Fixed pay LTIP Fixed pay LTIP Annual bonus 50% increase in price Annual bonus 50% increase in price of LTIP shares vesting of LTIP shares vesting * Please note some % in graphs above have been manually amended to resolve rounding errors (i.e. so that they add up exactly to 100%). At his request, Sir Will Adderley does not receive any remuneration apart from an annual salary, car allowance and healthcare benefits. Therefore his remuneration has not been included in the scenarios above. 148 DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021 )000‘£(noitarenumerlatoT)000‘ £( noitarenumer latoT MinimumIne xlipneec wtaittihonsMaximumMaxinimcLrueTmaIPs pe sl huinasrp e5rs0ic%vee ostfi ngMinimumIne xlipneec wtaitthionsMaximumMaxinimcLrueTmaIPs pesl huinas r pe5rs0ic%vee ostfi ng