Lendlease Annual Report 2024

Financial Statements 157 Arrangements for LTA Awards LTA Design How the LTA Works Performance Rights • An annual grant of ‘performance rights’ is made to a limited number of executives on the Global Leadership Team • 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 a variable number of Lendlease securities or at the discretion of the Board, cash with an equivalent value, upon vesting • Outcomes against performance hurdles will determine how many Lendlease securities will be received following vesting between nil and a maximum number • 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. Performance Period (applicable to FY22, FY23 and FY24 Grants) • 100 per cent of the performance rights are assessed over a three year period and the number of Lendlease securities that may be delivered on vesting is determined. The first tranche will vest immediately thereafter, and the second, third and fourth tranches will be deferred and will vest progressively four, five and six years after the grant date • If the performance hurdle is not met, the awards are forfeited • There is no retesting of the LTA grant. 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 LTA 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 LTA grant may remain on foot, subject to the original terms. Performance Hurdles • One third subject to Lendlease’s Total Securityholder Return (TSR) compared to the companies in the S&P/ASX 100 Index. The S&P/ASX 100 companies are determined at the start of the performance period • One third subject to Average Operating Return on Equity (Operating ROE) hurdle • One third subject to compound annual growth rate (CAGR) % in funds under management in FY22 and FY23 and Investments Return on Invested Capital (IM ROIC) from FY24. Percentage of performance rights that vest as a proportion of maximum opportunity Measure Senior Executive Vesting Schedule - Relative TSR (FY22, FY23 and FY24) Below the 50th percentile No vesting At the 50th percentile 40 per cent vesting Between the 50th percentile and 75th percentile Pro rata vesting on a straight line basis between 40 per cent and 100 per cent At or above the 75th percentile 100 per cent vesting Vesting Schedule - Average Core Operating ROE (FY22, FY23 and FY24) 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 % in FUM (FY22 and FY23) 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 Vesting Schedule - IM ROIC (FY24) Below threshold No vesting At IM ROIC for threshold vesting 0 per cent vesting Between IM ROIC for threshold vesting and IM ROIC for maximum vesting Pro rata vesting on a straight line basis between 0 per cent and 100 per cent At or above IM ROIC 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.