Lendlease Annual Report 2022

168 Lendlease Annual Report 2022 Notes to Consolidated Financial Statements continued LTI Design How the LTI Works Vesting Schedule – Average ROE (FY20) Measure Percentage of performance securities that vest as a proportion of maximum opportunity 10 per cent or less No vesting Above 10 per cent or less than 14 per cent Pro rata vesting on a straight line basis between 0 per cent and 100 per cent vesting At or above 14 per cent 100 per cent vesting Vesting Schedule - Average Operating ROE (FY21) Less than 8 per cent No vesting Between 8 per cent and target Operating ROE set by the Board Pro rata vesting on a straight line basis between 20 per cent and 50 per cent vesting At target Operating ROE set by the Board 50 per cent vesting Between target Operating ROE set by the Board and 11 per cent Pro rata vesting on a straight line basis between 50 per cent and 100 per cent vesting At or above 11 per cent 100 per cent vesting Vesting Schedule - Average Core Operating ROE (FY22) Below threshold No vesting At Core Operating ROE for threshold vesting 0 per cent vesting Between Core Operating ROE for threshold vesting and Core Operating ROE for maximum vesting Pro rata vesting on a straight line basis between 0 per cent and 100 per cent vesting 1 At or above Core Operating ROE for maximum vesting 100 per cent vesting Vesting Schedule - CAGR % FUM (FY21) Below CAGR for threshold vesting No vesting Between CAGR for threshold vesting and CAGR for target vesting Pro rata vesting on a straight line basis between 20 per cent and 50 per cent vesting At CAGR for target vesting 50 per cent vesting Between CAGR for target vesting and CAGR for maximum vesting Pro rata vesting on a straight line basis between 50 per cent and 100 per cent vesting At CAGR for maximum vesting 100 per cent vesting Vesting Schedule - CAGR % FUM (FY22) Below threshold No vesting At CAGR % for threshold vesting 0 per cent vesting Between CAGR % for threshold vesting and CAGR % for maximum vesting Pro rata vesting on a straight line basis between 0 per cent and 100 per cent vesting At or above CAGR % for maximum vesting 100 per cent vesting 1. Subject to 3 Year Average Annual Core Operating ROE being above the cost of equity determined by the Board. 35.d. Long Term Award (LTA) The LTA plan replaced the LTI for a limited number of executives from 2019. It was designed to motivate and reward key executives to deliver on the Group’s long term strategy and to allow them to share in the value created for securityholders. Specifically, the objectives are to: • Create rewards that are aligned to earnings • Align the interests of securityholders and our most senior executives • Promote team behaviours and an enterprise leadership mindset • Retain the senior executive team. The intended outcome is that reward and strategy are better aligned. Section F. Other Notes continued 35. Employee Benefits continued