Lendlease Annual Report 2024

Governance 75 Fixed Remuneration This section presents our approach to setting Fixed Remuneration. Design How Fixed Remuneration Works Benchmarking Approach • Quantum and remuneration mix are benchmarked to test that total remuneration remains market competitive. • Reviewed periodically as part of the Group's Annual Compensation Review process. • Considers the relative size, scale and complexity of roles to enable a fair comparison. • Benchmarking considers fixed and total remuneration with reference to the market median and 75th percentile. • Primary market benchmarking compares companies with relative revenue and market capitalisation. • To supplement the above, companies operating in similar industries and those that Lendlease compete for talent are also considered, such as Charter Hall Group, Dexus, Goodman Group, GPT Group, Mirvac Group, Scentre Group, Stockland and Vicinity Centres. Short Term Award (STA) This section presents the key features of the STA plan. STA Design How the STA Works Eligibility • Group CEO and Executives. Quantum • For FY24, target STA opportunity was as follows: – Group CEO: 100% of Fixed Remuneration – Executives (excluding Group CRO): 100% of Fixed Remuneration – Group CRO: 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 Group 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 • Group CEO and Executive scorecards, including: – 70% Financial Performance (Group Operating Profit After Tax, Gearing, Development - Completions, Construction - EBITDA margin, Investment Management - EBITDA margin) – 30% Non Financial Performance (safety, sustainability, customer and people). • Refer to page 78 for a summary of the FY24 Group CEO scorecard. • Lendlease is committed to the safety and wellbeing of all of its employees. Whilst the assessment is not structured formulaically or as a ‘gateway’ measure, health and safety outcomes are taken into consideration by the Board in assessing the appropriateness of STA outcomes. • The People & Culture Committee considers feedback from multiple sources to consider ‘how’ performance outcomes are achieved: – Executive input: Group CFO and Group CRO – 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 Lendlease securities released in two equal tranches after one and two years. FY25 STA Changes For FY25, the STA has been suspended and replaced with a Tranformation Award (TA) focused on security price recovery. TA will be delivered as market-priced security options, with vesting contingent on achieving significant security price growth over a two year horizon. Board discretion in relation to safety will apply in line with existing protocols.