Paragon Banking Group PLC ("Paragon" or the "Company")

Update on Annual General Meeting 2023 Remuneration Report vote

At Paragon's annual general meeting ("AGM") held on 1 March 2023, 69.19% of votes were received in favour of Resolution 2, the advisory vote to approve the directors' remuneration report (excluding the directors' remuneration policy).  The remuneration report is set out on pages 132 to 152 of Paragon's 2023 Annual Report and Accounts | Paragon Banking Group.  The remuneration policy (Resolution 3) itself was approved by 96.99% of shareholders.

The UK Corporate Governance Code requires that companies provide an update to the market within six months of an AGM where more than 20% of shareholders have voted against a resolution.  This statement provides an update on the actions that have been taken by the Company.

The Remuneration Committee ("the Committee") has engaged with a significant number of the Company's shareholders, both before and after the AGM, and noted that there were no consistent themes for voting against the remuneration report by the minority of shareholders who did so.  

Having reflected on the feedback and the support of the majority of shareholders, the Committee is satisfied that it acted in the best interests of the Company and all of its stakeholders.  However, the Committee will continue to maintain a regular dialogue with shareholders to ensure continued alignment with their interests and will reflect their feedback, where possible, in the Directors' Remuneration Report 2023.