Corporate governance report Remuneration continued EXECUTIVE DIRECTOR EXTERNAL BOARD We want all colleagues to feel they can grow with Dunelm and APPOINTMENTS that they are welcome. Improving our gender balance is part Executive Directors are permitted to hold one external of this and remains a commitment of ours. appointment as a Non-Executive Director or similar advisory or consultative role, subject to the Board being satisfied that We have good male/female representation in our senior there is no conflict of interest and that the position will not leadership. As at 26 June 2021, our Executive Board had impact negatively on the Executive’s commitment to their 55% female representation. When combined with the Group Dunelm role. The Board may allow the Executive to retain any Board, our senior leadership team is 45% female. remuneration received in respect of the appointment. ENGAGING WITH OUR COLLEAGUES ON PAY Nick Wilkinson and Laura Carr do not hold any external In a process introduced in FY19 there is an annual appointments. Sir Will Adderley is a Director of WA Capital presentation to the National Colleague Voice from Marion Limited. Sears, Non-Executive Director designated to consider colleague views, or William Reeve, Chair of the Remuneration SENIOR EXECUTIVE REMUNERATION Committee. A full National Colleague Voice meeting was The Remuneration Committee approved the remuneration allocated to engagement on remuneration in April 2021. of the Company Secretary and Executive Board members. Our People team presented an overview of how Dunelm The package for new appointments is formally presented to regards Fair Reward and also discussed it in the context of the Committee for approval. In conducting its assessment of Equal Pay (including ethnicity) and Gender Pay. William Reeve Executive Board remuneration, the Committee pays particular described Dunelm’s Pay Strategy and Structure including how regard to whether any individual is incentivised to take risks decisions are made by the Remuneration Committee and inappropriate to their role and responsibilities. the People Team in the context of regulation (National Living Wage), market conditions and relative to the market and our Members of the Executive Board and senior management competitors. Considering these factors we explained that team are eligible for awards under the LTIP and for Share we have decided Dunelm’s hourly paid colleagues should Bonus Awards. be paid at upper quartile/median level on average whilst recognising we cannot compete with grocers who stayed All members of senior management who receive share awards open during the pandemic. We also provided an overview of are also subject to shareholding targets, in order to improve Pay Strategy by level, expai ge differences at different their alignment with shareholders, as follows: levels between pay rise %, pension supplement % and variable pay element. Executive Board and certain 1× base salary to be other senior Executives acquired over time Our colleague representatives told us they believe Dunelm 0.5× base salary to be is a good employer that they trust, and that multiple factors Other Executives acquired over time contribute to their decision to work at Dunelm including reward and support. Our shared values, good line manager relationships and salary advance scheme were mentioned GENDER PAY DISCLOSURES specifically as being important. Representatives were clear We are committed to paying men and women equally for that pay for the CEO is at an appropriate level providing the roles of the same size and scale. Please see page 71 for details Company is being run well. Questions were asked about the of our latest Gender Pay Gap report. differential pay percentage given to lower-paid monthly vs. hourly-paid colleagues, the fairness of differential bonus Dunelm’s brand purpose is ‘To help create the joy of truly levels and the benefit of Sharesave for lower paid colleagues feeling at home. Now and for the generations to come.’ We who cannot afford to participate. want everyone to feel that Dunelm is a place for them, and this applies equally for our colleagues and customers. Diversity, inclusion, and more generally the wellbeing of our colleagues, are high on our agenda. 168 DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021