3 Although S4Capital did not have more than 250 UK employees during 2021, and is thus not formally required to publish the ratio of the Executive Chairman’s pay to the wider UK employee base, the Committee has decided to again do so as a matter of good practice. Year Method 25th percentile pay ratio Median pay ratio 75th percentile pay ratio 1 2021 Option A 5.0 3.6 2.6 Total pay and benefits £000 £40 £57 £77 Salary £000 £39 £54 £71 1 Option A 5.3 3.7 2.8 2020 Total pay and benefits £000 £41 £59 £77 Salary £000 £37 £51 £71 20191 Option A 6.8 5.8 4.1 Total pay and benefits £000 £40 £47 £67 Salary £000 £40 £47 £65 Note: 1. The calculations of the pay for the employees at the different levels have been calculated as of 31 December of each relevant year. The relevant reporting regulations give companies the option of calculating the CEO pay ratio using a number of different methodologies, known as Option A, Option B or Option C. We have chosen Option A, which involves calculating a single figure for each UK employee based on their actual pay for the year. This ensures that the most accurate information is used for the purposes of calculating the ratio and is the option most favoured by investors. A full-time equivalent calculation has been applied to the pay of part-time employees and those leaving or joining during each year to ensure an appropriate annualised comparison with the pay of the Executive Chairman. The Committee believes that the median pay ratio for 2021, as disclosed in the table above, is reflective of the current pay policies across the Group as a whole at this stage. Employees’ pay packages are designed to be competitive and to ensure that performance as a whole is rewarded through appropriate incentive schemes. The ratios at all three levels also reflect the fact that the pay for the Executive Chairman is relatively low when compared with the pay for leaders of companies of a similar size to S4Capital. There have not been any substantive changes in the pay ratio from 2020. To date, the Committee has not directly engaged with the workforce to explain how executive remuneration aligns with wider Company pay policy. However, the Committee is responsible for monitoring workforce remuneration and related policies and the relationship between the Directors’ Remuneration Policy and the arrangements in place for the wider workforce. S4Capital Annual Report and Accounts 2021 89