CSL Ltd Annual Report 2020

3.2.2 Remuneration Delivery Timeline The diagram below illustrates how the components of 2020 Executive KMP remuneration is delivered over a five year period. Year 1 Year 2 Year 3 Year 4 Year 5 FR STI LTI ● Award Granted ● Eligible for payment or vesting 3.2.3 Pay Mix The following diagram sets out the remuneration mix for Executive KMP in 2020. The majority of the target reward mix is variable remuneration and is at risk. This better aligns Executive KMP rewards with shareholder interests and is aligned to our pay for performance philosophy, focussing efforts on driving growth and long term performance and sustainability. The data for Executive KMP excluding the CEO is a weighted average. 0 20 40 60 80 100 Remuneration Mix – CEO Maximum Target Minimum 15% 16% 100% 26% 19% 65% 59% ● Fixed Reward ● STI ● LTI From a market alignment perspective, within our global pharmaceutical/biotechnology peer group our Executive KMP reward is competitive in the elements of fixed reward and STI, however LTI remains belowmarket comparators for all roles, including the CEO. The latter component remains a focus for the Board to ensure we have competitive reward packages and effectively incentivise for the long term success of the organisation by aligning outcomes with shareholder interests. ● ● ● ● ● ● 0 20 40 60 80 100 Remuneration Mix – Executive KMP Maximum Target Minimum 23% 25% 100% 31% 23% 52% 46% ● Fixed Reward ● STI ● LTI CSL Limited Annual Report 2020 73