CSL Ltd Annual Report 2020

Further detail can be found in section 5.2. 7.1.2 2020 CEO Realised Remuneration Below we have disclosed the CEO ‘realised’ remuneration with a full view of all Executive KMP ‘realised’ remuneration detailed in section 7.2, Table 12. This is a voluntary disclosure which the Board believes is simple and affords a transparent view of what the CEO’s actual take-home pay was in 2020. Further details related to how each of the below elements is determined is provided in section 9.2. These outcomes are aligned with the CEO’s and CSL’s performance during 2020, as well as being aligned to CSL’s longer term performance. This information has not been prepared in accordance with the Australian accounting standards. See section 6.1 (Table 9) for the Statutory Remuneration disclosure that has been prepared in accordance with the Australian accounting standards. 2020 CEO Realised Remuneration – USD 0% 20% 30% 50% 70% 90% 10% 40% 60% 80% 100% ● 2020 Total Fixed Reward ● Total STI Received ● Total LTI Received 1,823,354 2,477,746 23,923,845 Mr Perreault’s total ‘realised’ remuneration for 2020 was US$28,224,945 and this is a 21% increase from the prior year. Driving this increase was the vesting of LTI awards made under our legacy plans – the 2016 Option and Performance Right and 2017 Executive Deferred Incentive Plan awards (granted 1 October 2015 and 1 October 2016 respectively with further details in section 5.3). As you will have experienced as shareholders, there has been a significant increase in the CSL share price over this period (Options had an exercise price of A$89.52 (set at grant 23 ) and the share price at vesting was A$226.61) leading to increased reward outcomes for the CEO. The graph following depicts the increase in value of each of the vested awards over the period of grant to vest using the face value of the vested award at each point in time (CSL closing share price). For Options, the value shown is the difference between the exercise price and the closing price on date of vest. CEO – Vested LTI Award Growth Performance Share Units (PSUs) Performance Share Units (PSUs) Notional Shares Performance Rights Performance Options 15% 16% 100% US$1,430,785/US$1,516,136 US$1,172,032/US$2,107,400 US$615,735/US$1,344,776 US$2,112,458/US$5,322,482 US$-/US$13,633,051 ● Face Value at Grant (USD) ● Face Value at Vest (USD) 0 30 60 90 120 150 Oct 2015 Oct 2015 Oct 2016 Oct 2017 Sep 2018 Given the long termnature of CSL’s legacy remuneration plans, we will also see their impact on the ‘realised’ remuneration of our Executive KMP in our 2021 Remuneration Report when we report on vesting outcomes for the 2017 LTI awards (granted 1 October 2016). 7.1.3 2021 CEO Remuneration Targets In 2021 the Board has determined that there will be no increase to any component of total reward for Mr Perreault. Mr Perreault’s fixed reward will remain at US$1,751,000, his STI target at 120% of fixed reward and the LTI target at 400% of fixed reward. While the Board recognises Mr Perreault’s total reward is below the global pharmaceutical/biotechnology peer group, given the current global economic environment and investor and community sentiment, the Board believes no increase is warranted at this time. 7.2 2020 Executive KMP Realised Remuneration Table 12 shows the ‘realised’ remuneration of Executive KMP for the year ended 30 June 2020 in US Dollars. This is a voluntary disclosure that the Board believes is simple and affords a transparent view of what the Executive KMP actual take-home pay was in 2020. The main difference between ‘realised’ remuneration disclosures, and the statutory disclosures in section 6, is that the ‘realised’ remuneration table includes the value of performance based awards that vested or were paid in the period (calculated at the date of vesting), while the statutory tables include the accounting expense over the period the performance hurdles are met. Some of the ‘realised’ remuneration in the table was earned over the previous three to four years, but was not paid until 2020. This includes cash settled LTI earned between 2017 and 2020 and equity settled LTI earned over four years from 2016 to 2020. The significant increase in the CSL share price over the period of grant to vest has provided Executive KMP with a significant increase in value of the LTI component of reward. This has been demonstrated in the table below. The benefit of the increased share price has been shared by shareholders and Executive KMP alike. 23 At the date of grant, the Options were out of the money as the exercise price was higher than the CSL closing share price on the date of grant. CSL Limited Annual Report 2020 86 Directors’ Report