4.6 Long-Term Incentive CSL’s LTI design is intended to focus on the sustainable long-term growth of the organisation, delivering returns to CSL shareholders and aligning executives’ equity interests with those of shareholders. The key features of CSL’s LTI program for FY26 awards, granted 1 September 2025, were as follows. Feature Description Performance Period Three years from 1 July 2025 to 30 June 2028 Delivery PSU, being a conditional ‘right’ to a CSL share. No price is payable by the Executive KMP on grant or vesting of rights. Shares are allocated on vesting without the need for exercise by an Executive KMP Performance Measures and Weightings – Growth in ROIC from FY25 to FY28 (70%) – Growth in EPS from FY25 to FY28 (30%) These two financial performance measures were chosen to drive shareholder value and recognise the capital intensive nature of CSL’s businesses. As explained in Section 3, these metrics will be replaced by rTSR for the next award on 1 September 2026. Calculation – ROIC: Reported EBIT x (1–Effective Tax Rate)/(Average Equity + Average Net Debt) where Net Debt equals interest-bearing liabilities, less cash, and Average Equity and Average Net Debt is the average of the opening position on 1 July and closing position on 30 June of the respective financial year. For the FY26 LTI award, ROIC performance is based on the growth in ROIC (in percentage points) from the year ending 30 June 2025 (FY25) to the year ending 30 June 2028 (FY28). Vesting is also subject to a gateway, which requires the arithmetic average of the three annual ROIC outcomes during the performance period to exceed CSL’s internal investment hurdle rate. The internal investment hurdle rate applicable in the year ending 30 June 2028 will be used for the purposes of the gateway. – EPS: CSL’s reported net profit after tax in USD/Weighted average number of shares on issue (adjusted for repurchases/buybacks) Approach to Performance Target Setting When determining performance targets the Board considers a range of factors including: – CSL’s strategy; – Budget and forecast financial performance from CSL’s long range plan; – Historical financial performance; and – External factors including market guidance and any other relevant market disclosures. Sensitivity analysis and modelling is undertaken to test both the threshold and target values selected to create ambition and sufficient stretch, and alignment with shareholder interests. Performance Targets and Vesting Schedule EPS growth CSL’s EPS Growth Performance Vesting Outcome Below 9.0% 0% Equal to 9.0% 50% Greater than 9.0% and up to 10.0% Straight-line vesting between 50% and 100% At or above 10.0% 100% Vesting Date 1 September 2028 Holding Lock Period 1 September 2028 to 31 August 2029 Grant Methodology – To determine the number of PSUs issued, a five day volume weighted average share price preceding the grant date is used (allocation price14). The Board has the discretion to use a more suitable allocation price if the five-day average is inappropriate in the circumstances. – The LTI opportunity for each Executive KMP is divided by the allocation price to determine the number of securities granted Retesting – No retest Dividends and Voting Rights – No dividends or dividend equivalent payments are paid on unvested PSUs. Executive KMP are only eligible for dividends once shares have been allocated following vesting of any PSUs – PSUs do not carry any voting rights prior to vesting and allocation of shares 14. To ensure the same allocation price was used for all executives, Dr McKenzie’s allocation price was the price determined for the grant made on 1 September 2025, not the Volume Weighted Average Price at the date of Dr McKenzie’s grant following the 2025 AGM. CSL Limited Annual Report 2025/26 11 ROIC CSL’S ROIC percentage point growth from FY25 to FY28 CSL’s FY28 ROIC result Vesting Outcome Less than 1.5 Below 13.0% 0% 1.5 Equal to 13.0% 33% 1.5 to 2.2 Greater than 13.0% and up to 13.7% Straight-line vesting between 33% and 100% 2.2 At or above 13.7% 100% 71 CSL Limited Annual Report 2025/26
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