AIM Rule 26

The IQE website contains all the elements required under Rule 26 of the London Stock Exchange's AIM rules concerning Company Information Disclosure.

Statement of Compliance with the UK Corporate Governance Code

The Board of Directors believes in high standards of corporate governance and is accountable to shareholders for the Group’s performance in this area.

The Group has chosen to apply the UK Corporate Governance Code (the “Code”) and to provide corporate governance disclosures similar to those that would be required of a premium-listed company. The Code is available on the website of the Financial Reporting Council (FRC) at: www.frc.org.uk.

IQE has identified the following areas of non-conformance with the Code:

Provision 17
IQE does not currently maintain a succession plan for the Company Secretary or all senior management immediately below Board level. IQE will work to develop such plans based on merit and objective criteria. As part of its consideration of developed succession plans, the Nominations Committee will consider the linkage of its diversity objectives with Company strategy and the gender balance of those in senior management and their direct reports.

Provision 33
The Remuneration Committee has responsibility for determining the policy and setting remuneration for the Executive Directors and the Chairman. It also has responsibility to recommend and monitor the policy, level and structure of remuneration for senior management. However actual remuneration for senior management and the Company Secretary (noting that the Company Secretary is part of the Executive Leadership Team and senior management) is set and determined by the CEO in consultation with the Group’s Chief People Officer and appropriate external advice and benchmarking.

Provision 36
Share options granted to the Executive Directors under IQE’s LTIP are subject to total vesting and holding periods of three years. In addition, Executive Directors are subject to a minimum holding requirement equal to 200% of their base salary and will have a post-employment shareholding requirement for two years. The minimum holding will be equal to 200% of base salary in the first year post-employment, reducing to 100% of base salary in the second year.

IQE’s approach aligns with market practice across IQE’s peer group on AIM and the Remuneration Committee considers the current holding periods to be the right balance between incentivising Executive Directors and aligning with the interests of the Group’s stakeholders

A copy of the 2018 UK Corporate Governance Code is available at ww.frc.org.uk.

This page was last updated on 7 February 2025.

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