TERMINATION ARRANGEMENTS FOR NICK WHARTON
SECTION 430(2B) COMPANIES ACT 2006 STATEMENT
The following information is provided in accordance with section 430(2B) of the Companies Act 2006.
As announced on 11 September 2014, Nick Wharton resigned from his position as Chief Executive and stepped down from the Board on 10 September 2014. Mr Wharton ceased to be an employee of Dunelm on 10 September 2014.
In line with his contractual arrangements Mr Wharton will be paid salary, pension and performance rewards earned up to the date of termination of his employment plus 12 months’ salary, pension and benefits in lieu of notice. These amounts include:
- Salary and pension to date of termination of his employment.
- Bonus earned for the 2013-14 financial year, following application of performance criteria, of £93,636
- The entitlement, on 28 November 2014, to exercise the option granted to him under the Long Term Incentive Plan over 107,888 ordinary shares (77.5% vesting following application of performance criteria for the performance period of 1 July 2011 to 30 June 2014).
£512,010 in respect of salary, pension and benefits for the 12 month notice period under his service contract.
Mr Wharton will also receive as compensation for loss of office a payment of £787,990. This represents:
- An allowance for cash bonus earned for the financial year 2014-15.
- An amount accrued in respect of unvested awards made under the Company’s Long Term Incentive Plan on 20 November 2012 and 7 October 2013. The Remuneration Committee took into account the time that had elapsed through the performance period and the extent to which the performance targets have been met. A reduction was also made for accelerated payment of the award. These awards have now lapsed.
No compensation was paid in respect of the “joining award” under the Long Term Incentive Plan dated 1 December 2010 over 198,807 shares, which was conditional on Mr Wharton remaining in employment at the vesting date of 1 December 2015. This award has now lapsed.
The arrangements set out above were considered carefully by the Remuneration Committee in consultation with its advisors Deloitte, and reflect the fact that Mr Wharton is a “good leaver”.
The Group’s Directors’ Remuneration Report for the year ending 4 July 2015 will contain the full details of the remuneration paid to Mr Wharton during the year.