Corporate governance report Remuneration continued SHARE OPTIONS AND DILUTION The Remuneration Committee considers the provisions of the Investment Association’s Guidelines on Executive Remuneration when determining the number of shares over which share scheme incentive awards may be made. At the period end, over the last ten-year period options have been granted over 2.8% of the Company’s issued share capital (adjusted for share issuance and cancellation). The Group does not hold any shares in an employee benefit trust. SERVICE CONTRACTS In accordance with the Group’s policy, the service contracts of the Executive Directors have no fixed term, the notice period for termination is 12 months from either party for Sir Will Adderley, and six months for Nick Wilkinson and Laura Carr. Service contracts for the Executives include a non-compete arrangement. Payments on termination are restricted to a maximum of the value of base salary and benefits for the notice period. The Remuneration Committee may apply mitigation in respect of any termination payment. The Non-Executive Directors have letters of appointment for an initial period of three years with a provision for termination of one month’s notice from either party, or three months’ notice from either party in the case of Andy Harrison, the Chairman. Table 8 – Directors’ service contracts Start date Unexpired Notice under contratc term period Sir Will Adderley 28 September 2006 N/A 12 months Nick Wilkinson 1 February 2018 N/A 6 months Laura Carr 29 November 2018 N/A 6 months Marion Sears 22 July 2004 10 months 1 month Andy Harrison 1 September 2014 24 months 3 months William Reeve 1 July 2015 33 months 1 month Peter Ruis 10 September 2015 36 months 1 month Ian Bull 10 July 2019 11 months 1 month Arja Taaveniku 15 February 2021 30 months 1 month Since Marion Sears has now served more than nine years on the Board her contract is renewed for one-year terms (rather than three), with the notice period referred to above. RELATIVE TOTAL SHAREHOLDER RETURN (TSR) PERFORMANCE The graph below shows the Group’s performance over ten years, measured by total shareholder return, compared with the FTSE 350 General Retail Index and the FTSE 250. The Remuneration Committee has chosen these indices for comparison because they provide a range of comparator companies which have similar market capitalisation, which are in the same sector and which face similar market and economic challenges in the long term. Table 9 – Total shareholder return performance graph (rebased to 2 July 2011 = 100) The shares traded in the range of 1,131p to 1,561p during the year and stood at 1,367p at 25 June 2021. 600 Dunelm FTSE 250 500 FTSE 350 Retail 400 300 200 100 0 Aug 11 Aug 12 Aug 13 Aug 14 Aug 15 Aug 16 Aug 17 Aug 18 Aug 19 Aug 20 Aug 21 164 DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021 001 ot desabeR