Directors’ Report 3. 2024 Global Remuneration Framework 3.1 Alignment of Executive reward to CSL’s purpose and strategy To deliver on its promise to patients, CSL relies on its people and maintaining a strong supply of global talent. CSL’s Total Rewards Principles are aligned to its purpose and business strategy and enable CSL to attract, engage and retain talent, provide flexibility to address talent challenges in various markets, and allow CSL to compete with other large global pharmaceutical companies. CSL’s purpose The people and science of CSL save lives. CSL develops and delivers innovative medicines that help people with serious and life-threatening conditions live full lives and protect the health of communities around the world. The CSL Values guide CSL in creating sustainable value for stakeholders This purpose is underpinned by the 2030 Strategy providing the framework to innovate for the future, advance CSL’s sustainable growth, continue saving people’s lives and protecting public health across the globe and ensuring a positive employee experience. The strategy enables a scalable enterprise, fuelled by innovative technologies and a globally connected and engaged workforce CSL’s global Total Rewards Principles are aligned with our purpose and business strategy CSL’s global executive remuneration framework elements Efficiency and Reliable Supply Focus Innovation Sustainable Growth Digital Transformation Internal equity, inclusive culture Common global structure aligning employee and shareholder interests, and considers community expectations Pay for performance while living our CSL Values Holistic approach to well-being Effort matters Simplicity and clarity Element FR STI LTI Purpose Attract, retain and engage key talent to deliver CSL’s strategy Reward performance against company and individual KPIs on an annual basis Promote the longer term performance and strategy of CSL Delivery Cash salary and superannuation/pension paid throughout the year Cash paid annually PSUs with a three year performance period Approach Determined based on role scope, complexity and responsibilities, with consideration of individual experience, performance as well as internal and external factors Outcomes based on business and individual performance KPIs with a maximum opportunity capped at 200% of an Executive KMP’s target STI Three year PSUs granted annually with vesting based on performance against ROIC (70%) and EPS Growth (30%) targets Leading & Managing Modifier The Board has the discretion to apply a ‘Leading and Managing’ modifier (upwards and downwards) to STI and LTI outcomes, formally recognising the importance of CSL’s culture, including leadership behaviours, values, diversity objectives and individual management of risk. The modifier can be an increase of up to 20% and a decrease of up to 50% Risk Management Before determining remuneration outcomes and vesting, the Board assesses alignment with risk management outcomes to hold executives accountable for effective management of both financial and non-financial risk. Outcomes and vesting may be adjusted upwards and downwards Benefits CSL provides market competitive benefits to attract and retain talent. Benefits may include, but are not limited to, accident, disability and death insurance, health insurance, car parking, global parental and caregiver leave, select vaccinations and participation in local benefit programs 82 Limited Annual Report 2023/24
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