Lendlease Annual Report 2022

Governance 89 Short Term Award (STA) This section presents the key features of the STA plan. Maximum STA opportunity for FY22 has been increased (excluding the Global CEO) through a rebalance of the remuneration mix as part of adjustments to our Executive Reward Strategy: • Removal of the RSA, which was not subject to performance based vesting hurdles. • Implementation of STA deferral, with 50 per cent deferred into Lendlease securities. The deferred portion will be released in two equal tranches after one and two years. STA Design How the STA Works Eligibility • Global CEO and Executives Quantum • For FY22, target STA opportunity was as follows: – Global CEO: 100% of Fixed Remuneration – Executives (excluding Group Chief Risk Officer): 100% of Fixed Remuneration – Group Chief Risk Officer: 80% of Fixed Remuneration • The minimum possible STA outcome is zero • The maximum STA outcome is limited to 139% of target STA opportunity for the Global CEO and 140% of target STA opportunity for other Executives Funding • The Board determines the pool of funds to be made available to reward Executives, with reference to Group financial and non financial performance • The Board examines safety performance and the overall health of the business (including a broader set of metrics around origination, sustainability and how we have managed risk) Key Performance Indicators • Global CEO and Executive scorecards, including: – 65% Financial Performance (Group Operating Profit After Tax, Development - Completions, Construction - EBITDA margin, Investment Management - EBITDA margin) – 35% Non Financial Performance (safety, sustainability, customer and people) • Refer to page 90 for a summary of the FY22 Global CEO scorecard • Lendlease is committed to the safety and wellbeing of all of its employees. While the assessment is not structured formulaically or as a ‘gateway’ measure, poor health and safety outcomes may lead to a reduction in STA outcomes for the year • The People & Culture Committee considers feedback from multiple sources to consider ‘how’ performance outcomes are achieved: – Executive input: Group Chief Financial Officer and Group Chief Risk Officer – Board committees: the Audit Committee, Risk Committee, and Sustainability Committee Delivery • 50% paid as cash in September following the assessment of performance • 50% deferred as Rights to receive Lendlease securities released in two equal tranches after one and two years