3. Executive Remuneration Framework Changes for FY27 Following both the first and second 'strikes' at the 2024 and 2025 AGMs, Directors and members of the management team engaged with a range of stakeholders and CSL appreciates their time and valuable feedback. The insights gained from these discussions provided input into the comprehensive review of the executive remuneration framework that took place during the year. As a result, changes have been made to drive a stronger focus on improving CSL’s performance and delivering sustainable growth, whilst also taking into account key business priorities and ensuring incentives are aligned with the shareholder experience. The changes take effect for the FY27 financial year and are described below. Changes to the executive STI plan NPAT will replace NPATA in the Group STI scorecard to align with the revised financial guidance approach. CSL received feedback from key stakeholders that NPAT is preferred as an STI measure because it is an IFRS measure which they consider to be more transparent. In response to feedback that the weighting of individual measures was too high, the individual component will be removed from the STI scorecard and individual performance and behaviours will be used as a modifier going forward. As a result, 95% of the STI scorecard will be subject to company financial measures. The FY27 STI scorecard measures will be NPAT (50% weighting), Cashflow from Operations (CFO) (25% weighting) and Total Group Operating Revenue (20%). The remaining 5% of the STI scorecard will be based on Sustainability measures focused on greenhouse gas emissions. Individual performance will be assessed against fewer, outcome-focused individual KPIs which are aligned to CSL's key strategic priorities. Taken together, individual performance and behaviours will have the potential to modify overall STI outcomes by between -50% and +20%. These changes increase the weighting and impact of company performance on executive STI outcomes, and more closely aligns the executive STI plan to US market practice. Changes to the LTI plan The Board considered a range of LTI measures during the review and determined that the measure most aligned to shareholder outcomes would be TSR. As such, for the FY27 LTI, relative TSR will replace the ROIC and EPS growth measures. CSL’s TSR performance will be assessed over a three-year performance period against the following two comparator groups: • Constituents of the S&P/ASX 50 Index, excluding companies in the Financial Services sector (50% weighting); and an • Industry comparator group which will include a set of global pharmaceutical/biotechnology companies (50% weighting). Vesting for each comparator group will commence at median (50% vesting) and increase on a straight-line basis until 100% vesting occurs at or above the 75th percentile of a given comparator group. Shares allocated at the time of vesting remain subject to a one-year holding lock. Relative TSR is aligned with market practice in the US and Australia, and encourages executives to remain focused on delivering sustainable long-term performance and returns for our shareholders. Changes to the Minimum Security Holding Policy In response to stakeholder feedback, CSL has made changes to the Minimum Security Holding Policy to strengthen the alignment between executives, NEDs and shareholders. Under the updated policy that applies to NEDs and members of the GLT (and is detailed in section 8.2), securities cannot be sold until the minimum security holding requirement has been met. The only exceptions are to meet tax obligations from the vesting of equity awards made under a CSL Equity Plan or in exceptional circumstances (e.g., severe financial hardship), as approved by the Board in its absolute discretion. Once the minimum requirement has been met, securities will generally not be permitted to be sold if doing so would take the seller's holding below the minimum requirement. CSL Limited Annual Report 2025/26 767 CSL Limited Annual Report 2025/26
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