Directors’ Report 5. Executive Key Management Personnel Outcomes in 2023 5.1 2023 Target Remuneration P McKenzie Effective 1 September 2022, the Board determined that Dr McKenzie, in his role of COO, would receive a 3.5% increase to FR, taking his FR to US$1,015,680. Dr McKenzie’s STI target remained at 100% of FR and he received an increase to his LTI target to 425% of FR. Dr McKenzie’s TDC was US$6,348,000. On appointment to the role of CEO, the Board increased Dr McKenzie’s FR by 72% to US$1,750,000, increased his STI target to 120% of FR and kept his LTI target at 425% of FR. Effective 6 March 2023, Dr McKenzie’s TDC was US$11,287,500. J Linton In 2023, the Board determined that Ms Linton would receive an increase to FR of 3.7%. This increase was inclusive of the superannuation guarantee increase from 10% to 10.5%. Taking into consideration both the global pharmaceutical/biotechnology and Australian general industry peer groups, skill, experience and internal relativity, Ms Linton’s STI target was increased from 85% to 100% of FR and her LTI target was increased from 175% to 225% of FR. These changes resulted in a TDC of US$3,827,036. P Perreault In 2023, the Board determined that Mr Perreault would receive an increase to FR of 3.5%, no change to his STI target and an increase to his LTI target to 450% of FR. These increases resulted in a TDC of US$12,506,579. 5.2 CSL and Executive KMP Performance In 2023, CSL has continued to demonstrate resilience in its results, delivering a strong performance within a challenging operating environment. CSL’s focus on improving efficiencies across its global network of manufacturing sites has helped reduce the impact of inflation and currency headwinds and focus remains on executing on CSL’s strategy of delivering innovative medicines to our patients. As a result, our NPATA landed in line with expectations and at the top end of market guidance, while CFO was down slightly on the prior year. Introduced in 2023, outcomes against the new Sustainability measure exceeded expectations with an overall maximum outcome awarded. The following diagram sets out the achievements. Establish a robust program governance process, including reporting, monitoring and verification that is transparent and aligned with our network strategy. An agile process that focuses on doing the right thing in the right place at the right time Established sustainability portfolio and mechanisms to identify and prioritise initiatives Established and launched programmanagement governance Reporting, monitoring and verification plans implemented SBTi filing prepared, with Board endorsement for SBTi validation obtained Converted Marburg manufacturing site to 100% renewable electricity supply Commenced conversion process of the Kankakee manufacturing site to renewable energy supply Developed business case for Australia power purchase agreement Finalised energy efficiency initiatives to be included in the Australia Tullamarine site design Finalised supplier engagement plan Developed and launched supply standards and communication materials for supplier outreach Undertake global initiatives that reduce CO2 emissions to meet our 40% reduction target by 2030 and aligned with SBTi; Increase renewable energy supplies at select global manufacturing sites Incorporate sustainable design up front in our new facilities that will ensure long term success as our business grows Engage our supply partners to achieve a low emissions supply chain, working with our suppliers to follow our lead in their Scope 1 & 2 and join us on this journey Portfolio Program Governance Energy Initiatives (Scope 1) Renewable Power (Scope 2) New Facilities (Scope 1 & 2) Supplier Engagement (Scope 3) CSL Limited Annual Report 2022/23 96
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