Directors’ Report Changes in 2025 The environmental (E) ambitions and targets in CSL’s sustainability program have matured over the past two years. In 2025, our ambitions and focus areas in the Social (S) and Workforce (W) pillars have been extended, reflecting the strategic importance to our business. Accordingly, the sustainability objective in CSL’s STI will be expanded to cover ‘S’ and ‘W’ measures, in addition to those covering the ‘E’. The number of measures will also be reduced to incentivise our executives to focus on a smaller number of key targets that will have a meaningful impact on our sustainability strategy. The overall weighting will remain 5% of an Executive KMPs STI KPIs. We retain our LTI measures of ROIC and EPSg, reflecting our focus on growth. As mentioned, CSL moved from a seven‑year performance period to a single three-year forward look. While this was well received by investors, some did flag concern, wanting to see a longer performance period. To address this, for awards granted from 1 September 2024, a one year holding lock period will be applied following vesting of Performance Share Unit awards for all Global Leadership Group members. The holding lock will ensure the executive’s reward continues to be exposed to the CSL share price and aligned with our shareholders’ experience. Remuneration in 2025 Executive KMP For 2025, the Board has determined to make increases to Fixed Reward only, recognising that each Executive KMP remains below the median of the global pharmaceutical/biotechnology peer group for total target direct compensation (TDC). Dr McKenzie will receive a 3.5% increase to Fixed Reward and no change to his STI or LTI percentage opportunity. This increase positions Dr McKenzie’s TDC at 71% of the median of our global pharmaceutical/biotechnology peer group. Ms Joy Linton, our Chief Financial Officer, will receive an increase to Fixed Reward of 3.97%, inclusive of the superannuation guarantee increase applied at 1 July 2024. Ms Linton will have no change to her STI and LTI percentage opportunity. Ms Linton’s TDC position against the global pharmaceutical/biotechnology peer group will be 66% of the median. Mr Andrew Schmeltz, our Executive Vice President CSL Behring, will receive an increase to Fixed Reward of 4.5% and no change to his STI and LTI percentage opportunity. Mr Schmeltz’s TDC position against the global pharmaceutical/biotechnology peer group will be 92% of the median. NEDs Following benchmarking against ASX12 NED remuneration, there will be an increase in fees of 3% for all Board and Committee roles, effective 1 July 2024. Remuneration Framework Outlook The Board will continue to review our remuneration framework to ensure that in competing in a global market, we can attract and retain the highest quality talent to deliver on our strategy. The Board will continue to evaluate our remuneration framework to ensure it remains competitive with our global pharmaceutical and biotechnology peers. A key focus will be our LTI program. As we talk with shareholders over the coming months, we will share our thinking and seek feedback. Thank you to my fellow Human Resources and Remuneration Committee members and thank you for supporting CSL and the patients we serve around the world. Dr Megan Clark AC Chair Human Resources and Remuneration Committee Sustainability Achievement of all environmental STI milestones ROIC Annual ROIC of 10.5% NPATA US$2,907m 15% on prior year at constant currency NPAT US$2,642m 25% on prior year at constant currency CFO US$2,764m 6% on prior year EPS US$5.47 20% 2024 Financial Highlights 78 Limited Annual Report 2023/24
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