Fixed pay comprises base salary, benefits and pension only (see table below). Base (last known Pension salary) Benefits (3% ofsalary) £’000 £’000 £’000 Nick Wilkinson 582 48 17 Laura Carr 397 20 12 The following assumptions have been made in respect of the scenarios on the opposite page: Performance level Fixed pay Annual bonus LTIP Minimum As above Nil Nil (performance below threshold) In line with expectations As above 40% of annual bonus will vest 50% of the LTIP award (i.e. 100% of salary for Nick Wilkinson and 90% of salary for Laura Carr), based on face value of the award at the date of grant. Maximum performance As above 100% of annual bonus will vest 100% of the LTIP award (i.e. 200% of salary for Nick Wilkinson and 180% of salary for Laura Carr), based on face value of the award at the date of grant. Maximum performance, As above 100% of annual bonus will vest 100% of the LTIP award (i.e. 200% of salary for Nick plus share price increase Wilkinson and 180% of salary for Laura Carr), plus an increase in the value of the LTIP of 50% across the relevant performance period to reflect possible share price appreciation. It should be noted that the illustrative performance number is likely to be different to the actual pay that is earned by Nick Wilkinson and Laura Carr during the year as: • Actual pay will reflect Company and personal performance over the relevant performance period. • We are required to show the value of the LTIP awards that are expected to be made in the year, not those which vest by reference to performance in the year. This valuation is based on the expected face value at the date of grant without making any assumptions for changes in the share price (other than as noted in relation to the final scenario). • No adjustment is made for payment of special dividend equivalents as the level of these cannot be determined at the date of this report. SERVICE CONTRACTS AND LOSS OF OFFICE determined by reference to the performance conditions and, PAYMENTS unless the Remuneration Committee determines otherwise, a All of the Executive Directors have service contracts. The reduction to reflect the proportion of the performance period notice period for termination for Sir Will Adderley is 12 that had elapsed at cessation. months from either party, and for Nick Wilkinson and Laura Carr is six months from either party. If the Company The limited circumstances in which unexercised LTIP awards terminates the employment of the Executive Director it would might be exercised following termination of an Executive honour its contractual commitment. Any payment of salary Director’s service contract are set out on page 150. on termination is contractually restricted to a maximum of the value of salary plus benefits for the notice period. If Non-Executive Directors have letters of appointment. The termination was with immediate effect, a payment in lieu of term is for an initial period of three years with a provision for notice may be made. The Remuneration Committee may termination on one month’s notice from either party, or three apply mitigation in respect of any termination payment. months’ notice from either party in the case of the Chairman. Letters are renewed for up to two additional three-year The Remuneration Committee has discretion to make a terms, and then renewed annually. The letter of appointment payment in respect of any cash annual bonus, provided that it will terminate without compensation if the Director is not is pro-rated to service. reappointed at the AGM. Share bonus awards will lapse on termination of employment Details of the likely duration of the service contracts for before vesting other than in the event of death, serious Executive Directors and the letters of appointment for the ill health and any other reason at the discretion of the Non-Executive Directors are set out in Table 8 on page 164 of Remuneration Committee. If an award does not lapse, the the Implementation Report. Remuneration Committee will determine whether it vests on termination or at the ordinary vesting date. If termination is The Directors’ service contracts and letters of appointment during the performance period, the extent of vesting will be are available for inspection by shareholders at the Company’s registered office. DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021 149 GOVERNANCESTRATEGIC REPORT FINANCIAL STATEMENTSOTHER INFORMATION