Lendlease Annual Report 2022

Governance 91 Impact of Safety Incidents on FY22 STA Outcomes We are deeply saddened by a fatal incident involving a subcontractor worker that occurred on one of our operations in FY22. We go beyond regulatory reporting requirements and report all fatalities on our sites as we do not consider the lives of contractors, subcontractors, consultants and community members any different to our employees. In line with the guiding principles for determining remuneration adjustments arising from safety incidents set out on page 97, the key factors considered by the Board when determining whether a remuneration adjustment should be made for the fatality that occurred during FY22 are: 4 Hudson Yards, New York, USA • The project was established with a number of best practice initiatives and had performed safely prior to the fatal event. • The Board is satisfied based on material from internal and independent external sources currently available that this incident is not a result of a failure of Lendlease supervision as the relevant area was under subcontractor management. • The region met all other EHS metrics targets for FY22. Based on the assessment of the above factors and materials available at the time, the Board has determined that no adjustments would be made to the FY22 STA outcome as a result of the fatality, noting that if new information emerges from external investigations, the Board can reduce future STA outcomes or apply a malus adjustment. There are no material updates in relation to any ongoing investigations into past fatalities. Adjusted Global CEO STA outcome The Board assessed that the Global CEO had performed extremely strongly against his scorecard KPIs. The progress on the strategic reset is ahead of expectation, and strong momentum has been generated in the business in the second half. However, having regard to the overall financial result from the actions taken as part of the reset, in determining the final STA outcome, the Board have exercised discretion to reduce the outcome on both the financial and non-financial KPIs. • A total downwards adjustment of 33% has been applied on the metricated scorecard outcome for the Global CEO. • The final adjusted Global CEO STA outcome is 48% of maximum opportunity. FY22 Short Term Performance Outcomes The following table outlines the FY22 STA opportunity and outcomes for each Executive. A$’000 1 Target STA opportunity Maximum STA opportunity Total STA awarded STA awarded - cash 2 STA awarded - deferred 3 Total STA awarded as % of Maximum STA 4 Total STA forfeited as % of Maximum STA 4 Current Executives Anthony Lombardo 1,800 2,500 1,200 600 600 48% 52% Dale Connor 1,200 1,680 1,013 507 506 60% 40% Simon Dixon 5 750 1,050 638 319 319 61% 39% Justin Gabbani 814 1,140 692 346 346 61% 39% Denis Hickey 1,528 2,139 1,176 588 588 55% 45% Frank Krile 800 1,120 680 340 340 61% 39% Neil Martin 1,224 1,713 1,000 500 500 58% 42% 1. Remuneration is reported in AUD based on the 12 month average historic foreign exchange rates for FY22 (rounded to two decimal places): SGD 0.98 (applied to Justin Gabbani), USD 0.72 (applied to Denis Hickey) and GBP 0.55 (applied to Neil Martin). 2. 50% of the FY22 STA is paid as cash in September 2022. 3. 50% of the FY22 STA is deferred as Rights that will be released in two equal tranches after one and two years. 4. Rounded to the nearest decimal place 5. The FY22 STA for Simon Dixon reflects time as a KMP (1 October 2021 to 30 June 2022).