STATEMENT OF IMPLEMENTATION OF POLICY IN THE FY22 FINANCIAL YEAR Shareholders will note that there were specific arrangements proposed for performance remuneration relating to FY20 and FY21 due to the Covid-19 pandemic, and that we have reverted to our usual Policy structure for FY22 onwards. Base salary and benefits for each of the Executive Directors for FY22 are set out in the table below: Table 14 – Base salary, benefits and pension for FY22 Change to Increase to Increase to pension Base base salary benefits contribution Name salary year-on-year Benefits year-on-year Pension % year-on-year Nick Wilkinson£582,125 3.5% Car allowance; travel allowance of 5% of salary; N/A £17,464(5%pts) private health insurance for the individual and their family; permanent health cover; life assurance; mobile phone; colleague discount. Laura Carr £396,663 3.5% Car allowance; private health insurance for the N/A £11,900(5%pts) individual and their family; permanent health cover; life assurance; mobile phone; colleague discount. Sir Will £1 Nil As for Laura Carr above. Nil Nil N/A Adderley Sir Will Adderley has asked that he not be considered for a pay increase. BASE SALARY FY22 ANNUAL BONUS It was agreed that the Committee would like to award Nick Wilkinson and Laura Carr have each been awarded an increase in base salary to Nick and Laura in view of a bonus opportunity of up to 125% of base salary. The their strong performance and that of the Company. The performance conditions attached to the bonus are: Committee considered their total remuneration for FY21, • 50% linked to achievement of budget PBT; the performance of the business, the other stakeholder considerations outlined in relation to payment of the FY21 • 25% linked to achievement of budget sales share bonus award, including the feedback on Executive • 25% linked to achievement of strategic and personal Director pay given by the National Colleague Voice, and the targets, aligned to the Group strategy. These include wider Covid-19 climate. customer and colleague satisfaction measures, and at least one other environmental, social and governance measure From 1 August 2021, the Committee decided to award linked to our ‘Pathway to Zero’ ambition. each of Nick Wilkinson and Laura Carr a 3.5% increase in base salary. These increases are in line with the median pay The budget sales and PBT are set taking into account market increase across the Group of 3.5%. The base pay of each consensus and broker expectations. The actual financial and of the Executives will still be slightly below the external strategic targets have not been disclosed at this time as they benchmark median. are commercially sensitive. The targets and an assessment of the extent to which they have been achieved will be disclosed PENSION in next year’s Remuneration Report. In 2020, the Remuneration Committee committed to reduce the pension entitlement of Nick Wilkinson (CEO) and Laura Nick Wilkinson and Laura Carr have committed that two- Carr (CFO), from 10% of base salary, to the rate available for thirds of the bonus earned (after payment of income tax the wider workforce, currently 3%, by 1 July 2023. From 1 and National Insurance) will be invested in Dunelm shares, July 2020, both Nick and Laura agreed to accept an initial to be held for the duration of employment. Shares held reduction in their entitlement to 8% of salary. Following a on termination of employment will be retained for up to further review again in June 2021, the Committee was pleased a minimum of two years as required by the Shareholding that Nick and Laura have agreed to accept a further reduction Requirements set out in the Remuneration Policy. to bring their entitlement in line with the workforce average this year, two years before the Policy deadline. Therefore their Sir Will Adderley has asked that he not be considered for a pension entitlement will reduce to 3% of base salary from bonus award. 1 August 2021. DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021 169 GOVERNANCESTRATEGIC REPORT FINANCIAL STATEMENTSOTHER INFORMATION