Lendlease Annual Report 2022

Governance 93 LTA Design How the LTA Works Vesting Schedule (as % of Maximum LTA) RTSR Percentile Ranking % of Maximum LTA Average Operating ROE % of Maximum LTA CAGR % in FUM % of Maximum LTA Below 50th Nil Below threshold Nil Below threshold Nil At the 50th 40% At threshold 0% At threshold 0% At or above the 50th and below the 75th Straight line vesting between 40% and 100% Between threshold and maximum Straight line vesting between 0% and 100% Between threshold and maximum Straight line vesting between 0% and 100% 75 th or greater 100% At or above maximum 100% At or above maximum 100% Retesting • No retesting. • If the performance hurdle is not met at the time of testing, the awards are forfeited Distribution • Distributions are not paid, unless and until vesting conditions are met. FY22 Long Term Performance Outcomes The table below presents the performance and vesting outcomes for awards that were tested in FY22. The Board sets challenging LTA targets. The 2020 LTA was tested following the end of the financial year, resulting in nil vesting for FY22. LTA 1 Performance Period Performance Hurdle Performance Outcome Vesting Outcome Overall Vesting Outcome (% Maximum LTA) % Maximum LTA forfeited 2020 LTA 1 July 2019 to 30 June 2022 RTSR Below Threshold 0% 0% 0% (3 years) ROE Below Threshold 0% 2021 LTA 1 July 2020 to 30 June 2023 RTSR Peformance period on going (3 years) ROE FUM 2022 LTA 1 July 2021 to 30 June 2024 RTSR (3 years) ROE FUM 1. Refer Note 35 of the Notes to Consolidated Financial Statements for details of LTI / LTA Awards granted in prior financial years. As the ROE target is considered commercially sensitive, it is published following the end of the performance period. The ROE target for the 2020 LTA was 10.5%. Executive Service Agreements An overview of key terms of employment for current Executives is provided below: Contract Term Global CEO Other Executives Contract type Permanent Permanent Notice period by Lendlease 12 months 6 months Notice period by executive 12 months 6 months Termination Payment All Executives have termination benefits that are within the limit allowed by the Corporations Act 2001 without securityholder approval. Specifically, in the case where the Executive is not employed for the full period of notice, a payment in lieu of notice may be made. Treatment of unvested awards depends on the reason for termination: • Terminated for cause: Awards lapse. • Terminated for poor performance: Board discretion. • Resignation (engaged in activities that are competitive with the Group): Awards lapse. • ‘Good leavers’: Awards remain on foot subject to the original vesting conditions. LTA granted from FY23 onwards are prorated for good leavers based on time served.