Lendlease Annual Report 2024

84 Lendlease Annual Report 2024 Risk management and governance processes apply across remuneration timelines, aligned with our business cycle. We have short term, long term and ongoing mechanisms: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Long term • Long dated performance periods (up to 3 years) • Signi cant portion of remuneration delivered in equity • Remuneration deferral (up to 6 years) Short term • Signi cant portion of annual opportunity at risk and subject to performance • Holistic assessment of annual performance • Input from Risk committee Ongoing • Board discretion • Malus • Guiding principles (remuneration adjustments arising from safety incidents) See below for details of ongoing Risk Management and Governance Mechanisms • Change of control • Mandatory securityholding • Securities trading policy • Hedging • Independent advisor governance protocols Overall Board Discretion • The Board makes, reviews and approves decisions concerning executive remuneration throughout the year. The Board uses its discretion to influence individual outcomes or to steer management towards appropriate outcomes. Malus • The Board retains an overarching discretion to reduce or forfeit any unvested awards (during the deferral period beyond the performance testing period) if it considers that vesting of such awards would result in the participant receiving a benefit that was unwarranted or inappropriate. Guiding principles for determining remuneration adjustments arising from safety incidents • To inform robust decision making in relation to remuneration adjustments arising from safety incidents, the Board formalised a set of guiding principles and relevant factors in FY22. The key guiding principles are as follows: – Our objective is to learn from incidents and to reinforce an open dialogue and safety culture. Our people must have confidence that sharing safety related information supports this objective and helps to identify how we will adapt in the future. – As the facts and circumstances surrounding each incident are unique, decision making is not prescriptive or formulaic and requires the application of judgement. – To facilitate a consistent approach to decision making, rather than the application of a consistent outcome, the following set of relevant factors are used by the Board to evaluate the application of any remuneration adjustments to be made arising from safety incidents: Safety Leadership How is safety leadership demonstrated in the relevant business / project? Safety Performance How has the relevant business / project performed against safety performance indicators? Findings In the event of a fatality, what was Lendlease's role based on internal investigations? Availability of new information As events unfold over time, has new and pertinent information emerged from external investigations? Change of Control • The early vesting of any unvested awards may be permitted by the Board in other limited circumstances such as a change in control of Lendlease. In these circumstances the Board will determine the timing and proportion of any unvested awards that vest.