CSL Ltd Annual Report 2021

17. Remuneration Report Dear Shareholder, On behalf of the Board, I am pleased to present CSL’s Remuneration Report (Report) for the year ended 30 June 2021. This Report contains detailed information regarding CSL’s Key Management Personnel (KMP) for 2021. CSL plays a critical role in the global community – providing life-saving therapies to people with serious disease, and vaccines that protect public health. The Board is proud of the entire CSL team for delivering on this critical role. Delivering on our Promise in 2021 During the current pandemic, CSL under the leadership of our Chief Executive Officer and Managing Director (CEO), Mr Paul Perreault, has achieved a strong result. Remaining focused on delivering on our promise to patients and public health, in 2021 we have delivered: • Continued production of our core life-saving therapies – influenza vaccines and plasma and recombinant protein therapies; • Support for COVID-19 vaccines across multiple programs and partnerships spanning vaccines, monoclonal antibodies and plasma therapies; • An increase in reported Net Profit after Tax (NPAT) of 13.0%; • An increase in reported Revenue of 12.7%; • Cashflow fromOperations (CFO) of US$3,621.9m – an increase of 45.6% over prior year; • Growth in Basic Earnings per Share (EPS) of 12.7%; • Return on Invested Capital (ROIC) of 21.2%; • 25 new plasma collection centres globally – taking the total to 303; • Key research and development milestones to further strengthen and grow our pipeline; • Improved our Environmental, Social and Corporate Governance (ESG) performance, including recognition in the FTSE4Good Index series; • On our diversity strategy, including being named on Refinitiv’s Diversity & Inclusion Top 100 list and named on the Forbes World’s Best Employers list; and • An employee engagement result of 73% – on par with prior year. 2021 Executive Key Management Personnel Changes In March 2021, we welcomed Ms Joy Linton as our Chief Financial Officer. Ms Linton is a well-respected global leader with extensive strategic and financial experience as a Chief Financial Officer and brings significant experience and leadership capabilities to CSL. On commencement of employment, Ms Linton received awards to compensate for the remuneration forgone at her previous employer. The CSL awards are pro-rata replacements and vest either at or beyond their original dates. Further details can be found in section 6.4.3. As noted in 2020, we farewelled our former Chief Financial Officer, Mr David Lamont in October 2020. CSL’s Response to COVID-19 and Board Discretion Applied to Remuneration CSL has played a meaningful part in the global response to COVID-19, collaborating across organisations and countries to contribute to solutions. We worked with the University of Queensland during the primary stages of its UQ-CS v451 COVID-19 vaccine candidate and co-founded the CoVIg-19 Plasma Alliance, joining a group of 11 companies to develop a potential plasma-derived hyperimmune therapy for treating COVID-19. While both efforts concluded as deemed unsuitable to continue, learnings were taken and significant efforts were made by the CSL team. Seqirus donated its well-established adjuvant technology – MF59 ® – to the vaccine efforts of multiple entities. We partnered with AstraZeneca and the Australian Government and produced AstraZeneca’s COVID-19 vaccine for Australia. Our employees kept our operations and commercial networks running efficiently throughout a changing pandemic environment. We have supported our people and introduced wellness leave, allowing employees to take two leave days in 2021 to focus on their own physical and emotional wellbeing. We continue to support staff working from home and for our US based employees, including plasma collection centre staff, launched care@work, providing access to services for caregiving of dependents where a staff member needs to work on site. During the year we offered higher donor compensation, leveraged technology to make the donor experience more efficient and initiated a collaboration to deliver a new plasma collection platform. The impact of COVID-19 on business performance has varied across the Behring and Seqirus businesses. Plasma collections have been challenged due to decreased mobility and government stimulus but are recovering to pre-COVID-19 levels due to multiple initiatives to drive solid growth. Demand for influenza vaccine products is at the highest levels seen and in 2021 we have delivered a record number of doses worldwide. Our teams have delivered strongly on the financial and non-financial targets. There have been no adjustments made to the terms and conditions, including performance measures, of short term incentive (STI) and long term incentive (LTI) awards on foot. The Board chose not to apply the ’Leading and Managing’ modifier to outcomes which allows for recognition of extraordinary contribution in exceptional circumstances or significant leadership failure. The Board considered the quality of the financial performance, management of risk and the impact of COVID-19. The Board considered the outcomes for the STI financial metrics and determined not to use discretion to adjust these outcomes. However, in assessing the non-financial STI outcomes for Executive KMP for 2021 and ensuring appropriate balance between remuneration and performance, the Board exercised its discretion on the CEO’s objectives relating to reduced plasma collections in 2021 due to factors associated with COVID-19. In recognition of his extraordinary contribution to supporting vaccine development and manufacturing in Australia, Professor Andrew Cuthbertson AO received a discretionary bonus of US$483,067. CSL Limited Annual Report 2020/21 74 Directors’ Report