Urenco Annual Report 2022

Policy report Introduction The information below summarises key aspects of the Company’s remuneration policy for Executive and Non-Executive Directors. Future policy The policy is that a substantial proportion of the pay and benefits package should be performance related. The following provides a summary of the key components of the remuneration package for Executive Directors: Element Purpose and link to strategy Maximum Opportunity Operation and Performance Measurement Base Salary To attract and retain high calibre Executives. N/A Base salary and pensionable base salary (where different) are reviewed, but not necessarily increased, annually. In making salary determinations, the Remuneration Committee (REMCO) will consider: • the market positioning of the Executive Directors’ compensation packages; • comparison with Senior Management salaries; • planned average salary increase for other employees; • the experience, skills and performance of the Executive Director, or any change in the scope and responsibility of their role; • general economic conditions, Urenco’s financial performance and governance trends; and • the impact of salary increases on pension benefits and other elements of the package. Benefits To provide market competitive benefits. As specified in Urenco’s standard policies. Benefits that Executive Directors typically receive include car allowances, risk benefits (for example ill-health, disability or death-in-service), as well as employer contributions to insurance plans (such as medical). Precise benefits will depend on the Executive Director’s specific circumstances such as family status. Urenco’s mobility policies may apply, such as for relocation and tax return preparation support. The REMCO may adjust the range and scope of the benefits offered. Personal loans or guarantees are not provided to Executive Directors. Annual Performance Related Bonus Rewards the delivery of short term operational targets in line with Urenco’s strategic priorities, as well as individual contribution to Urenco. Maximum bonus for CEO/CFO (as a percentage of base salary): • 125% On target levels (as a percentage of base salary): • 83.3% The REMCO believes it is important for annual variable pay to complement the LTIP’s focus on longer term financial outcomes. For the 2022 performance year, the scorecard framework consisted of financial targets (48% weighting), operational excellence (32% weighting) and individual targets (20% weighting). In 2022 a Behaviour Multiplier was introduced. The ‘how’ component multiplier will be applied to the outcome of the performance related bonus for all ExCom members with a value of 0.8 to 1.2 (1.0 representing on target). The multiplier will be a discretionary judgement, based on an assessment of the ‘how’ component. Each ExCom member will be assessed separately. The same annual bonus scorecard approach applies to other senior executives, supporting consistency of remuneration and alignment of objectives. For future years, the specific measures and weightings for the annual bonus scorecard will be reviewed annually by the REMCO and adjusted accordingly to evolve with Urenco’s strategy and circumstances. The annual review will also consider the scorecard target and outcome history over previous years to ensure that the targets set remain stretching but realistic. • The bonus is determined by reference to performance from January 1 to December 31 each year; • The Committee has the discretion to reduce bonus payouts in the event of material issues in relation to health and safety, security, quality or regulatory performance. Governance Remuneration Report continued Governance 02 78 Urenco Annual report and accounts 2022