THE UNITE GROUP PLC Annual Report and Accounts 2024 115 This would be the third highest in the sector in percentage terms eighth highest in monetary terms). In summary, the Committee considers that the proposals ensure that our pay structure remains appropriately positioned in the sector context. Other minor wording changes have also been reflected in the Policy, including a clearer articulation of our longstanding philosophy that Executive Director and senior executives should be paid fairly and competitively, but not excessively – reinforcing Unite Group’s commitment to value for money. Finally, as our long-term incentive plan rules approach their tenth anniversary of adoption, we have taken the opportunity to ensure that the current drafting reflects best practice. Resolutions to approve the new, and largely unchanged, scheme rules for the PSP and ESOS will also be submitted at the 2025 AGM. IMPLEMENTATION OF THE POLICY IN 2025 SALARIES The CEO’s salary has been increased by 2.5% with effect from 1 January 2025. The CFO’s salary has been increased by 7.9% to reflect the strong start he has made in his first year in the role, and consistent with the Committee’s previously-communicated intention of bringing him closer to market levels over the short to medium term. The average salary increase across the Group will be 3.9%. Unite Group maintains its commitment to being an accredited Real Living Wage employer and, for relevant individuals, has implemented the rates set by the Living Wage Foundation (5.3% in London and 5.0% across the rest of the UK). PENSION Total employer pension contributions for the CEO and CFO will continue to be in line with that available to the wider employee population at 11% of salary. ANNUAL BONUS Joe Lister and Mike Burt will each participate in the 2025 annual bonus, with maximum opportunities of 150% of salary. Up to 50% of any bonus earned will be deferred in shares for two years, unless a Director has met their in-post shareholding guideline, in which case the full bonus earned will be paid in cash. The Committee remains satisfied that the overall blend of financial and non-financial measures continues to support the Group’s strategy and reinforce its values. One minor change – reducing the weighting on net debt to EBITDA from 20% to 15% and increasing the weighting on adjusted EPS from 25% to 30% – will be made to reflect an increased focus on profitability in the current business context. For all financial and non-financial elements, challenging targets have been set. Details are on page 135. LONG-TERM INCENTIVES Joe Lister and Mike Burt will receive an award of up to 200% of salary delivered through a combination of the PSP and ESOS. The performance metrics used for the 2025 LTIP will be substantially unchanged, save that the EPC ratings measure will be dropped and its weighting reassigned equally across the other measures. This change reflects the Group’s strong performance in achieving A-C EPC ratings across its portfolio and the stretch targets of last year’s award having been set at 100% achievement by 2026. Further details, including targets for each measure, are set out on page 135. Ranking across FTSE 350 Real Estate CEOs Unite Group’s current market positioning. Unite Group’s market positioning under the proposed Policy and implementation for 2025. Each bar represents a sector peer, including Unite Group. Market Cap (£) Highest Lowest 50% 75% 25% Salary (£) Total Rem. (fair value £) Cash elements (% of Total Rem.) Cash elements (£) NON-EXECUTIVE DIRECTOR FEES The Committee resolved to delay the second stage review of the fee payable to the Chair of the Board and agreed instead a modest increase of 2.5% with effect from 1 January 2025. Following a review by the Chair of the Board and the Executive Directors, the fees payable to other Non-Executive Directors have increased by 2.5%. WORKFORCE REMUNERATION CONSIDERATIONS The Committee continues to monitor pay and practices for other senior executives and more broadly across the wider workforce when considering the remuneration of Executive Directors. The Group People Director is invited to attend Committee meetings to provide updates on workforce initiatives and to offer an employee perspective. In August 2024, I was invited to meet members of our Culture Matters employee forum, and shared information on the role of the Committee and Executive Director remuneration. The Committee has continued to review the statutory CEO pay ratios and additional ratios looking at both fixed pay and pay excluding long-term incentives – see page 133. The Committee remains satisfied that the year-on-year fluctuations in these ratios mainly reflects differences in the structure of pay at different levels of seniority. Details of our gender diversity and pay gaps are provided on page 47. LOOKING AHEAD The Committee will continue to monitor market developments and will consider the appropriateness of any emerging trends for Unite Students. I hope that you find this report a clear account of the Committee’s decisions for the year and would be happy to answer any questions you may have at the upcoming AGM. Nicky Dulieu Chair of the Remuneration Committee 25 February 2025