CSL Ltd Annual Report 2020

2. 2020 Remuneration Outcomes at a Glance CEO • No increase to fixed reward • A short term incentive (STI) payment of US$2,477,746 – 79% of maximum opportunity • A long term incentive (LTI) grant of US$7,004,000 – 400% of fixed remuneration • LTI vesting during the year of US$23,923,845 (face value at vest) • Received ‘realised’ remuneration in financial year 2020 of US$28,224,945. Other Executive KMP • No increase to fixed reward • STI awards were paid at an average of 82% of maximum opportunity and were in the range of US$699,030 to US$1,164,765 • Annual LTI grants for all other Executive KMP were in the range of US$1,182,690 to US$2,981,906 (face value at grant) • LTI vesting for Professor Cuthbertson of US$2,018,233 (face value at vest) • LTI vesting for Mr Lamont of US$2,272,478 (face value at vest) • Dr McKenzie received a sign on equity award of US$4,740,637 as partial compensation for forgone Biogen equity awards, US$1,684,148 of which was ‘realised’ during 2020 (face value at vest) • ‘Realised’ remuneration in 2020 received as follows: – Professor Cuthbertson – US$3,425,261 – Mr Lamont – US$4,044,761 – Dr McKenzie – US$4,349,026 Non-Executive Directors • Received an average increase to fees of 1.9% 3. Global Remuneration Framework 3.1 Global Total Rewards Principles To deliver on our promise to patients and protect public health, we rely on our people and need to ensure a strong global talent supply. Our Total Rewards Principles, reviewed and simplified in 2020, enable us to attract, engage and retain talent, provide us with the flexibility to address talent challenges in various markets and allows us to compete with larger global pharmaceutical companies. We motivate our people to deliver their best performance by enabling an approach that integrates market competitive and differentiated reward programs that align to CSL’s strategy and business objectives. Common Global Structure • We leverage a market-based approach to offer competitive rewards, balancing both a global and local view • We align employee and shareholder interests, and consider community expectations • We benchmark ourselves against the life sciences industry 2 • We have a single pay design for all senior executives Effort Matters • We celebrate and recognise both the effort that is required along the way as well as the real results created by our employees Results and Behaviours • We are committed to a pay for performance culture based on both role requirements and how the individual performs • Living our CSL Values is a non-negotiable expectation Holistic Approach to Well-Being • We foster an environment of well-being that is multi-dimensional – physical, emotional, financial and social health Internal Equity, Inclusive Culture • We reward fairly and competitively • We strive and monitor for equal pay for equal work Simplicity and Clarity • We aim to create easy to understand programs and policies so people value and use them • We are committed to transparency in our communications – internally and externally 2 CSL Plasma is benchmarked against the Retail industry. CSL Limited Annual Report 2020 71