CSL Ltd Annual Report 2019

4.2 STI Outcomes by Executive KMP in 2019 The financial performance of CSL makes up the majority weighting of the KPIs for Executive KMP, incentivising the delivery of strong financial performance. In 2019, the financial performance measures were NPAT and CFO. NPAT at 30 June 2019 resulted in an above target performance, however CFO was below target (and above threshold). The remaining KPIs measured individual performance. Achievements that contributed to the outcomes detailed in Table 4 below can be found in Table 3 of this Report. The Board made no adjustments under the Clawback and Malus Policy and no risk management, behaviour or compliance issues were identified. Table 4: STI Outcomes in 2019 Executive Value of STI Earned STI opportunity at Target level hurdle as a % of FR STI opportunity at Maximum level hurdle as a % of FR STI earned as % of Target level opportunity STI earned as % of FR Financial Performance Outcome Individual Performance Outcome P Perreault 1,979,386 120% 180% 94% 113% Between Threshold and Target N/A G Boss 412,369 75% 113% 89% 66% Between Threshold and Target Between Threshold and Target W Campbell 542,463 85% 128% 103% 88% Between Threshold and Target Between Target and Maximum A Cuthbertson 563,225 85% 128% 92% 78% Between Threshold and Target Between Threshold and Target K Etchberger 390,147 75% 113% 92% 69% Between Threshold and Target Between Threshold and Target D Lamont 722,033 85% 128% 93% 79% Between Threshold and Target Between Threshold and Target WMezzanotte 443,564 85% 128% 93% 59% Between Threshold and Target Between Threshold and Target G Naylor 956,298 85% 128% 123% 120% Between Threshold and Target Between Target and Maximum V Romberg 434,527 85% 128% 86% 73% Between Threshold and Target Between Threshold and Target E Walker 312,510 75% 113% 94% 71% Between Threshold and Target Between Threshold and Target 4.3 LTI Outcomes by Executive KMP in 2019 In 2019 we tested our 2014 (granted 1 October 2013) and 2015 (granted 1 October 2014) legacy LTI programs, along with tranche one of the new LTI framework introduced in 2018 (grant made 1 October 2017). Due to CSL’s performance against a peer group of global Pharmaceutical and Biotechnology companies, and strong share price growth over the performance period, vesting value outcomes were high. The table below shows the performance of CSL against the targets with vesting occurring in August 2018 and September 2018. Executive Deferred Incentive Plan (EDIP) awards, granted in 2016 (grant date of 1 October 2015), vested at 100%. There was a 127% growth in the value of each Notional Share that was cash settled – a grant share price of A$89.52 and a settlement value of A$203.25 per notional share. Grant Date Security Tranche Tested Performance Period Exercise Price A$ Performance Outcome Vesting Outcomes 1 October 2013 Right 2 1 July 2013 – 30 June 2018 Annual EPS growth at 9.49% 68.75% vested 6 1 October 2014 Option 1 1 July 2014 – 30 June 2018 73.93 Individual Performance 100% vested Right 1 RTSR ranking – 95th%ile against a peer group of global Pharmaceutical and Biotechnology companies 100% vested Right 2 Annual EPS growth at 9.07% 49.33% vested 7 Right 3 Annual EPS growth at 9.07% 0% vested 8 1 October 2017 PSU 1 1 July 2017 – 30 June 2018 Seven year ROIC at 28.7% 100% vested 6 In October 2017, there was no vesting at the first test of the award – this is a retest resulting in vesting of 68.75% – the remaining 31.25% of the award has been lapsed. This is the final LTI award that has retesting. 7 The remaining 50.67% of this tranche has been lapsed – there is no retest. 8 The full tranche has been lapsed – there is no retest. CSL Limited Annual Report 2019 68 Directors' Report