Dfs Furniture Plc Regulatory News (DFS)

14  December 2022

DFS Furniture plc

("the Company")

Grant of 2022 Awards under the Long-Term Incentive Plan (the "LTIP")

DFS Furniture Company announces the following transaction by persons discharging managerial responsibility ("PDMR") in ordinary shares of the Company with a nominal value of £0.10 ("Shares") took place on 14 December 2022.

John Fallon the Chief Financial Officer of DFS Furniture plc has been granted an award of Shares under DFS Furniture PLC's Long-Term Incentive Plan ("the LTIP").

The award forms part of the 2022 grant of LTIP awards to the leadership team. The awards were granted to the rest of the leadership team and, as previously announced, to the Chief Executive Officer, in October 2022, and with an award now being granted to Mr Fallon following his appointment to the Board on 14 November 2022.

Under the terms of the LTIP, Mr Fallon was awarded a Conditional Share Award equivalent to 140% of salary, which has been pro-rated to reflect Mr Fallon being in role for 35 months out of the normal 36 month vesting period (the "Award"). The number of Shares over which the Award was granted was calculated based on a Share price of £1.48 being the average of the last 3 days closing price before the grant of the Award. No consideration was payable for the grant of the Award. To the extent the Award vests, Mr Fallon will also be entitled to Dividend Equivalents as defined in the LTIP Conditional Share Awards granted under the LTIP will normally vest after a three-year performance period, subject to achievement of the performance measures. The performance measures are based on Relative Total Shareholder Return ("TSR") and Adjusted Earnings Per Share ("EPS"). The Award is also subject to a Holding Period of two years commencing on vesting of the Award. All LTIP awards are also subject to continuous employment obligations.

The performance conditions applicable to the Award are two equally weighted performance measures:

1) Relative Total Shareholder Return ("TSR") (50% of the award) 

The proposed performance target for the Relative TSR element mirror the last four LTIP awards (FY19- FY22).

The performance period for the FY23 Award began at the beginning of the Company's 2023 Financial Year and will finish at financial year ending 29 June 2025.

2) Adjusted Earnings Per Share (50% of the award)

The Remuneration Committee carefully considered whether to reduce the number of Shares to be subject to the Award, from the standard 140% of base salary, given the decline in share price since the previous grant of awards by the Company and in the context of shareholder experience. The Remuneration Committee considered the prospects for the near-term financial performance of the Company given concerns on future consumer spending due to the economic environment; the share price performance of the Company which has moved relatively consistently with its closest listed retail peers; and emerging practice from other listed retail companies. On balance, the Remuneration Committee decided that no reduction was required and will consider the formulaic outcome at the time of vesting to ensure that this is aligned with the overall performance achieved and the broader stakeholder experience. The Remuneration Committee may use discretion to adjust the outcome downwards if appropriate.

Details of the conditional share awards under the LTIP are as follows:

NOTIFICATION AND PUBLIC DISCLOSURE OF TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES AND PERSONS CLOSELY ASSOCIATED WITH THEM

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