Corporate governance report Remuneration continued Table 12 – CEO pay ratio We have utilised a third party (Barnett Waddingham) to calculate our CEO Pay Ratio. There are three permissible methods available to calculate this, which are outlined below: Option Method A Determining the total FTE remuneration for all UK employees. Rank from low to high. Identify the colleagues at 25th percentile, 50th percentile, 75th percentile. B Identify the colleagues at 25th, 50th, 75th percentile, using the Gender Pay Gap Reporting. C Use a different data set, but calculate in the same way as the Gender Pay Gap Reporting. Option A is considered the most statistically accurate method and therefore we have opted for this method. The table below shows the ratio of actual pay of Nick Wilkinson, CEO, to other colleagues. Full year pay data for FY21 has been used to calculate these ratios and the elements included are based on the CEO single figure remuneration in Table 1: 25th 50th 75th percentile pay percentile pay percentile pay Financial Year Method ratio ratio ratio FY21 Option A 204:1 204:1 186:1 FY21 Total pay and benefits £19,793 £19,793 £21,740 FY20 (Based on actual remuneration – including Nick’s 90% pay reduction during the period April to June 2020.) Option A 54:1 47:1 38:1 FY20 (Based on contractual remuneration.) Option A 62:1 53:1 43:1 FY20 Total pay and benefits £16,409 £18,918 £23,498 The increase in the number of store colleagues relative to the total colleague population in FY21 has impacted the total pay and benefits attributable to the percentile bandings. The following assumptions were made to calculate these figures: • We have used a 40-hour week in order to consistently calculate the annual salary for everyone, converting hourly rate of pay into a full-time equivalent salary, to ensure direct comparison. • 9,857 colleagues were included in the data set. • 81.22% bonus outcome for Nick Wilkinson and 100% LTIP vesting. Commentary: There has been a sizeable increase in the CEO pay ratio in FY21 versus FY20. This is attributable to an increase in variable pay - both annual bonus (81.22% in FY21 v 20% in FY20), and the vesting of the FY19-21 LTIP scheme of 100% in FY21 compared to 19.8% vesting in FY20 for the FY18-20 LTIP scheme. On a salary only basis, the ratios would be 30:1 at 25th and 50th percentile and 26:1 at 75th percentile. 166 DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021