Lendlease Annual Report 2024

74 Lendlease Annual Report 2024 Our Remuneration Framework Fixed Remuneration Short Term Award (STA) Long Term Award (LTA) Purpose To attract and retain highly capable executive talent. To provide focus on key strategic priorities in the relevant financial year. To reward for delivering sustained long term securityholder value. Approach Fixed remuneration is benchmarked against relevant comparator companies to assess market competitiveness. Considers the relative size, scale and complexity of roles to enable a fair comparison. STA is linked to a balanced scorecard representing key strategic priorities aligned to delivering the Group Strategy and securityholder returns. Delivered as 50% cash and 50% deferred as Lendlease securities released in two equal tranches after one and two years. LTA provides an annual grant of ‘at- risk’ equity to reward for delivering the Group Strategy, aligned with long term securityholder returns. Delivered as rights to Lendlease securities which are released in four equal tranches at the end of Y3, Y4, Y5 and Y6. Link to Performance Sustained performance and leadership as an Executive. STA scorecards are designed to include a mix of financial and non- financial performance targets for the relevant financial year: • Financial (70%) • Non-Financial (30%). LTA is linked to forward-looking, three- year performance under: • Relative TSR (1/3) • Return on Equity (1/3) • Growth in Investment Return on Invested Capital (IM ROIC) (1/3). Award value is linked to security price movements over three to six years. Governance The People & Culture Committee and the Board review our remuneration principles and remuneration framework as well as determine the STA and LTA outcomes for Executive KMP, which remain subject to the Board's discretion to reduce or forfiet any unvested awards. The Board retains the discretion to reduce or forfeit any unvested awards if it considers that vesting of such awards will result in the participant receiving a benefit that would be unwarranted or inappropriate. Additionally, the Group CEO LTA is submitted for securityholder approval at the AGM. For more information, refer to the 'Remuneration Governance and Risk Management' section. Executive Reward Strategy Structure The following diagram illustrates the structure of the Executive Reward Strategy: Fixed Remuneration Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 STA End of deferral / performance period LTA FY24 Remuneration Mix Target remuneration mix for the Group CEO and Executives (excluding the Group CRO 1 ) is as follows: 1 The remuneration mix for the Group CRO in FY24 was: 38% Fixed Remuneration, 31% Target STA and 31% Target LTA.