Remuneration Report The peer group for FY26 comprised: Amgen Inc GlaxoSmithKline plc Sanofi Bausch Health Companies Inc Gilead Sciences Inc Takeda Pharmaceutical Company Bayer AG Grifols, S.A. Teva Pharmaceutical Industries Biogen Inc Merck KGaA Vertex Pharmaceuticals Inc Bristol-Myers Squibb Company Regeneron Pharmaceuticals, Inc In addition, general industry groups for Australia, Europe and North America are used to help the company appropriately reward senior talent and are used as a primary, or hybrid, data set for certain Executive KMP roles (for example, Australian data is also used for the Chief Financial Officer role, given that Mr Lim is based in Australia). 4.5 Short-Term Incentive The key features of the STI program for FY26 are detailed below. As explained in section 3, the STI program has been redesigned for FY27, to increase the focus on Group performance (relative to individual Executive performance). Mr Naylor did not participate in this STI program. Feature Description Performance Period Annual award aligned with the financial year – 1 July 2025 to 30 June 2026 Delivery Cash – to be paid in September 2026 Performance Measures – In FY26, each Executive KMP had a maximum of seven KPIs. The KPIs are made up of two financial measures, a sustainability measure, plus up to four individual business building KPIs – Hurdles are set at threshold, target and maximum levels of performance with a significant difference between each performance level to ensure a challenging but meaningful incentive is provided for the performance delivered – Key considerations when determining the STI performance targets are CSL’s business strategy and commitment to delivering sustainable growth and value for shareholders. The Board also considered CSL’s FY26 budget, forecast financial performance, historical financial performance and market guidance. Different market and internal conditions are analysed to understand the impact on CSL’s performance, growth and STI payment outcomes under different scenarios – The performance measures are chosen so that Executive KMP are focused on the achievement of the CSL strategy, delivery of business results and CSL’s success and sustainability Financial Sustainability Individual Profitable financial growth is the foundation of CSL’s long-term sustainability. The FY26 financial performance measures are NPATA measured at constant currency, and CFO measured at reported rates Ensuring a global shared focus on CSL’s long-term sustainability and global footprint consistent with CSL’s purpose and values Individual KPIs aligned with CSL’s strategic priorities, encourage appropriate decision making, and balance performance in financial and non-financial priorities As explained in Section 3, the weightings of these performance measures will be amended for the FY27 STI performance period (1 July 2026 to 30 June 2027). Opportunity and Calculation – 50% of STI earned at threshold level performance, increasing on a straight-line basis with 100% earned at target level performance and 200% on achievement of maximum level performance (capped at 200%). – Individual STI outcomes are determined by multiplying the weighted outcome for each KPI by the individual’s target STI opportunity (as disclosed in section 2). Directors’ Report Remuneration Report 10 Further detail on the STI performance measures and outcomes for FY26 is provided in section 6.1. Performance Measure Weightings K Lim A Schmeltz P McKenzie J Linton Financial NPATA 30% 25% 35% 30% CFO 20% 25% 25% 30% Sustainability 5% 5% 5% 5% Individual 45% 45% 35% 35% 70 Directors’ Report
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