Lendlease Annual Report 2022

170 Lendlease Annual Report 2022 Notes to Consolidated Financial Statements continued Percentage of performance securities that vest as a proportion of maximum opportunity Measure Former Group CEO (Steve McCann) Senior Executive 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 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 No Vesting Between CAGR for threshold vesting and CAGR for target vesting Pro rata on a straight line basis between 13 per cent and 63 per cent Pro rata vesting on a straight line basis between 8 per cent and 41 per cent At CAGR for target vesting 63 per cent vesting 41 per cent vesting Between CAGR for target vesting and CAGR for maximum vesting Pro rata on a straight line basis between 63 per cent and 100 per cent Pro rata vesting on a straight line basis between 41 per cent and 100 per cent At CAGR for maximum vesting 100 per cent vesting 100 per cent vesting Vesting Schedule - CAGR % in 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 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.e. Restricted Securities Award (RSA) The Restricted Securities Award (RSA), previously referred to as the LTA Minimum, is similar to fixed remuneration as it is not subject to performance conditions. It is designed to motivate and reward a limited number of key executives to deliver on the Group’s long term strategy and to allow them to have a sense of ownership and share in the value created for securityholders. The RSA (and previously referred to LTA Minimum) is not continuing from FY22 under the revised Executive Reward Strategy. Arrangements for RSA Awards RSA Design How the RSA Works Performance Rights • An annual grant of ‘performance rights’ is made to a limited number of executives on the Global Leadership Team • However, following feedback from proxy-holders and other stakeholders, the RSA will no longer be offered from FY22 • The Board intends that the awards be settled in Lendlease securities, although some or all of the award may be settled in cash at the Board’s discretion • Performance rights are rights to receive one Lendlease stapled security, or at the Board’s discretion, cash or other instruments of equivalent value • In the event of a change in control of the Group, the Board has the discretion to determine whether the vesting of some or all performance rights should be accelerated. Vesting Period • The first tranche (i.e. 25%) will vest after three years and the second, third and fourth tranches will vest progressively four, five and six years after the grant date. Termination of Employment • If the executive resigns and becomes engaged in activities that are competitive with the Group or is terminated for cause, the unvested RSA is forfeited • If the executive is terminated and if the Board considers vesting would provide a benefit that was unwarranted or inappropriate, the Board has the discretion to lapse some or all performance rights prior to the vesting date • For ‘good leavers’, the RSA grant may remain on foot, subject to the original terms. Section F. Other Notes continued 35. Employee Benefits continued