CSL Ltd Annual Report 2020

7. 2020 and 2021 Executive Key Management Personnel Remuneration 7.1 CEO Remuneration 7.1.1 2020 CEO Remuneration Outcome The Board determines any increases to reward for the CEO based on his performance and relative to external benchmarks. When comparing Mr Perreault’s total reward to the reward of CEOs across the pharmaceutical/ biotechnology peer group, Mr Perreault lags the median – specifically on the LTI component. As has been the case for the past four years, there was no increase to fixed reward, remaining at US$1,751,000. Mr Perreault’s STI percentage remained set at 120% of his Fixed Reward for target performance and his maximum payout opportunity capped at 180% for outstanding performance. An increase was applied to LTI as communicated in our 2019 Remuneration Report – the target is now 400% of fixed reward (also maximum opportunity) and the LTI is both time and performance hurdled. Irrespective of these changes, Mr Perreault is still below the median for the pharmaceutical/ biotechnology peer group. Mr Perreault’s target reward for 2020 is displayed below. 2020 CEO Total Target Reward – USD 0% 20% 40% 60% 80% 100% ● 2020 Fixed Reward ● 2020 STI Target ● 2020 LTI Target 1,751,000 2,101,200 7,004,000 The 2020 STI outcome for Mr Perreault was 118% of target based on the two key measures of above target NPAT and CFO performance outcome and individual performance that resulted in an outcome between threshold and target. Individual outcomes against objectives set for Mr Perreault included: Outcome Commentary ● The optimisation of our newly implemented business model across the End to End Supply Chain. Succession management and bench strength of critical roles focus with key leadership roles in place and/or transitioned. The transformation of our ‘Enabling Functions’ to ensure enterprise-wide operating models and functions is underway, ensuring the CSL Group is able to deliver on our 2030 strategy. Delivery of the 2020 diversity targets and objectives ● Global, sustainable growth continues through the creation and implementation of the 2030 strategy with a focus on Patients, Therapeutic Areas, Efficiency and Reliable Supply, Innovation and Digital Transformation. Key outcomes are included in section 5.1, table 2 ● Stewardship of our culture and achievement of cultural initiatives focused on values, innovation, effective risk management, employee health and safety, and compliance. Employee engagement outcomes continue to be above the global norm. Celebrate the Promise, CSL’s new global recognition program piloted and on track for global rollout in early 2021. Safety outcomes have continued to improve over prior year and key metrics continue to outperform industry averages ● Target Exceeded ● Target Met ● Target Partially Met ● Target Not Met The achievement against targets set resulted in a cash payment of US$2,477,746 (to be paid in September 2020). CSL Limited Annual Report 2020 85