FY21 ANNUAL BONUS – SHARE BONUS AWARDS helping to align the Executives’ interests with those of In the light of the Covid-19 pandemic, specific temporary shareholders. The closing share price on 19 November annual bonus arrangements were put in place in respect of 2020, the date preceding the date that the award was FY20 and FY21 as set out in the Remuneration Policy. As in granted, was 1,186p. Any bonus is payable in deferred previous years, Nick Wilkinson and Laura Carr were each shares, with 50% of the vested shares (after applying the eligible to earn an annual bonus with a face value of up to performance criteria) released in September 2021 and 125% of base salary, subject to satisfaction of performance the remaining 50% deferred to September 2022. In both targets. However rather than being paid in cash, this was to be cases release is subject to continued employment and the settled by way of a conditional share award, vesting over two participant not being under notice. financial years. These arrangements were adopted following • Covid-19 left us operating in an unprecedented business consultation with our major shareholders and enshrined in environment with an exceptionally unpredictable range our approved 2020 Remuneration Policy. of future outcomes, especially over FY20 and FY21. The primary goals of the business during FY21 were to cope In FY21, conditional awards were over: with the continuing Covid-19 pandemic and create the • Nick Wilkinson: 59,130 shares. platform for successful growth post pandemic. In these circumstances, the Committee considered it appropriate • Laura Carr: 40,291 shares. to determine vesting of the annual bonus share awards by reference to a robust qualitative assessment of Sir Will Adderley has asked that he not be considered for an performance in three specific areas over the financial year annual bonus award. to June 2021: financial performance and delivery of the • The number of shares in each award was determined by Group’s recovery plan; strategic progress and personal reference to the average share price over June and July objectives. 2020 of 1,189p per share. This price reflects the market • When the Committee determined the performance assessment of performance during FY20, as it is set at the outcome for the year, it carefully considered its assessment start of FY21 and includes the period post the year-end of performance in the wider context of how the Group had Trading Update on 15 July. This meant that there was more performed for all its stakeholders including the resumption risk or opportunity depending upon Dunelm’s progress of dividend payments, the repayment of government during FY21 as reflected in share price movements. The support received through the Job Retention Scheme and Committee believes that movements in the Dunelm share other grant relief, colleague pay increases and bonus price since then have reflected the market’s assessment earned, and the discretionary ‘thank you’ payments given to of the Group’s performance and potential since that date, colleagues. A summary of the bonus measures, weightings and performance is set out below: % of bonus opportunity 50% 25% 25% Total 100% Strategic Personal Measure Financial performance and recovery plan progress objectives Other Customer eNPS (total operational Sub measures Sales PBT NPS Company) metrics n/a n/a Weighting 12.5% 12.5% 6.25% 6.25% 12.5% 25% 25% Assessment Quarterly Quarterly Annual Annual Annual Annual Annual % of target met 100% 75% 72.5% 55% 72.5% 80% Nick 88% Laura 85% Nick Wilkinson % bonus earned 12.5 9.375 4.53 3.44 9.375 20.0 22.0 81.22% No. of shares vesting (in 2 equal tranches 2021 and 2022) 48,025 Laura Carr % bonus earned 12.5 9.375 4.53 3.44 9.375 20.0 21.25 80.47% No. of shares vesting (in 2 equal tranches 2021 and 2022) 32,422 A further explanation of how the Committee calculated performance for each of the criteria is set out below. DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021 155 GOVERNANCESTRATEGIC REPORT FINANCIAL STATEMENTSOTHER INFORMATION