THE UNITE GROUP PLC Annual Report and Accounts 2024 119 In accordance with the Regulations, the following sections of the Remuneration Report are subject to audit: the single total figure of remuneration for Directors and accompanying notes (page 128); scheme interests awarded during the financial year (page 131); payments to past Directors (page 131); payments for loss of office (page 126); and the statement of Directors’ shareholdings and share interests (pages 134 to 136). The remaining sections of the report are not subject to audit. REMUNERATION POLICY AND PRINCIPLES This section sets out the new Remuneration Policy which will be put to a binding vote at the 2025 AGM and, if approved, will apply with effect from 1 January 2025. A summary of the principal changes compared to the previously approved Policy is provided in the Annual Statement and highlighted in bold in the sections below. The Group aims to balance the need to attract, retain and motivate Executive Directors and other senior executives of an appropriate calibre with the need to be cost-effective, while at the same time rewarding exceptional performance. The Committee has designed a Remuneration Policy that balances those factors, taking account of prevailing best practice, investor expectations and the level of remuneration and pay awards made generally to employees of the Group. The Remuneration Policy for the Executive Directors and other senior executives is also based on the following principles: • A significant proportion of remuneration should be tied to the achievement of specific and stretching performance conditions that align with the creation of shareholder value and the delivery of the Group’s strategic plans, taking care to consider the needs of all stakeholders • There should be a focus on sustained long-term performance, with performance measured over clearly specified timescales, encouraging Executives to take action in line with the Group’s Strategic Plan, using good business management principles and taking well-considered risks • Our commitment to providing value-for-money should be reflected by paying senior executives fairly and competitively, but not excessively • Individuals should be rewarded for success, but steps should be taken, within contractual obligations, to prevent rewards for failure – whether financial or operational • Above all, Executive remuneration should support the values and culture of the Group. Pay should be simple and easy to understand, openly communicated to stakeholders and aligned with Group pay. The Committee has designed a Remuneration Policy that balances those factors, taking account of prevailing best practice, investor expectations and the level of remuneration and pay awards made generally to employees of the Group, as well as potential conflicts of interest. CONSIDERATION OF SHAREHOLDER VIEWS In designing the new Policy, the Remuneration Committee consulted with Unite Group’s top 20 investors and with proxy advisors (Glass Lewis, the Investment Association and ISS) to seek their views on the proposed changes and remuneration at Unite Group more broadly. The Committee thanks investors for the constructive feedback received. This feedback, along with updates to investor body principles published around the time of the review, were used to finalise the proposals. The Committee will continue to monitor trends and developments in corporate governance and market practice to ensure the structure of Executive remuneration remains appropriate. OTHER COMPANY CONDITIONS When making decisions on Executive Director remuneration, the Committee considers pay and conditions across Unite Group. We reflect on data such as the Gender Pay Gap reporting and the CEO pay ratio analyses. Prior to the annual salary review, the Group People Director provides the Committee with a summary of the proposed level of increase for overall employee pay. The Remuneration Committee did not formally consult with employees in designing the Remuneration Policy but instead used the dialogue with the Culture Matters forum in August 2024 to shape the final proposals. DIRECTORS’ REMUNERATION POLICY This report has been prepared in accordance with the provisions of the Companies Act 2006 and Schedule 8 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (as amended). It meets the requirements of the UK Listing Authority’s Listing Rules and the Disclosure and Transparency Rules.