CSL Ltd Annual Report 2020

Table 12: Executive KMP ‘realised’ remuneration (received or available as cash) in 2020 Executive 2020 Total Fixed Reward US$ 24 2020 Short Term Incentive US$ 25 Cash Settled LTI in 2020 US$ 26 LTI Vested in 2020 US$ 27 Total LTI Received US$ Total Reward Received US$ Total LTI Reward Received (valued at grant date) US$ 28 LTI Growth in Value (due to share price growth) US$ 29 Period Earned 2020 2020 2017 – 2020 2016 – 2020 2016 – 2020 2016 – 2020 2016 – 2020 2016 – 2020 P Perreault 1,823,354 2,477,746 1,344,776 22,579,069 23,923,845 28,224,945 5,331,009 18,592,836 A Cuthbertson 707,998 699,030 286,741 1,731,492 2,018,233 3,425,261 1,071,048 947,185 D Lamont 870,702 901,581 271,501 2,000,977 2,272,478 4,044,761 1,221,306 1,051,172 P McKenzie 1,500,113 1,164,765 – 1,648,148 1,684,148 4,349,026 1,310,951 373,197 7.3 2020 and 2021 Executive KMP Remuneration Adjustments CSL competes for talent in a global market and we need to attract and retain high calibre executives in a highly competitive global pharmaceutical and biotechnology industry. The unique skill set with specialised pharmaceutical and biotechnology expertise and experience that we require is critical to enable us to deliver on our strategy, promise to patients and deliver returns to our shareholders. Table 13 below sets out the changes to Executive KMP reward for 2020 (effective 1 September 2019) and 2021 (effective 1 September 2020). Where applicable the higher increase is applied to the LTI portion of the reward mix, driving focus on long term performance delivery and is in line with our pay for performance philosophy – rewards will only be earned where performance hurdles are met. As noted earlier in this report, a global pharmaceutical/ biotechnology peer group is used for external benchmarking. We align reward with the median of this peer group. The below rewards position our Executive KMPmore competitively in the market, at or below the median for total reward. The increases also take into consideration the skills and experience of Executive KMP. In determining reward, the Board considers internal pay relativity across the full Global Leadership Group. For Dr McKenzie, in 2021 there will be an expansion of role to include responsibility for the Seqirus business. The adjustment to salary and LTI reflects this increased responsibility in addition to market position and internal relativity. In 2021, Professor Cuthbertson will begin the transition to retirement from his executive duties. He will remain an Executive Director and continue to lead special projects across the CSL Group. Professor Cuthbertson’s prior Chief Scientific Officer role responsibilities will be undertaken by Dr WilliamMezzanotte and Dr Andrew Nash, who reports to Dr Mezzanotte. Accordingly, the remuneration structure for Professor Cuthbertson will be adjusted and will include salary only – remunerating for his work on the Board and leading the project and consulting work. Professor Cuthbertson will not be eligible for any STI or LTI awards. Mr Lamont will not receive any increase to fixed reward and will not receive a LTI grant in September 2020 due to his resignation which takes effect on 30 October 2020. On cessation of employment Mr Lamont will not be granted ‘good leaver’ status and will therefore not retain any unvested LTI awards. Table 13: Adjustments to Executive KMP reward 2020 and 2021 Executive Year % change in FR % change in STI $ opportunity at target % change in LTI $ opportunity at target Total Reward Adjustment % Total Reward Adjustment US$ P Perreault 2021 – – – – – 2020 – – 14% 9% 875,500 A Cuthbertson 2021 -35% -100% -100% -83% (2,168,730) 2020 – – – – – D Lamont 2021 – – – – – 2020 – – 8% 3% 91,396 P McKenzie 2021 3% 3% 14% 10% 476,375 2020 – – – – – 24 Includes base salary, retirement/superannuation benefits, and other benefits such as insurances, relocation and allowances paid in 2020. 25 Relates to STI earned in 2020 and will be paid in September 2020 (refer to section 5.2). 26 Value of awards vested at 30 September 2019 under the Executive Deferred Incentive Plan (EDIP) and paid in October 2019 (refer to section 5.3). 27 Value of LTI vested at 15 August 2019 (Options and Performance Rights) and 1 September 2019 and 1 March 2020 (Performance Share Units and Restricted Share Units) that became unrestricted (refer to section 5.3). The value at vest has been determined by multiplying the number of vested units by the closing share price on the date of vest. For Options, it is the difference between the closing share price and the exercise price. This has been converted to USD at an average exchange rate for the 2020 financial year of 1.48735. 28 The value at grant has been determined by multiplying the number of vested units by the closing share price on the date of grant. For Options, it is the difference between the closing share price and the exercise price. This has been converted to USD at an average exchange rate for the 2020 financial year of 1.48735. 29 This figure shows the increase in market value of the LTI awards due to share price growth between the grant date and the vesting date. The increase in value of the awards is calculated by multiplying the number of vested and/or exercised awards by the difference between the share price of CSL shares on the grant date and the vesting date or exercise date (as applicable). This has been converted to USD at an average exchange rate for the 2020 financial year of 1.48735. CSL Limited Annual Report 2020 87