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Remuneration Principles

Our Remuneration Strategy Framework is founded on the desire to align Executive remuneration with the creation of value for shareholders and is underpinned by the following seven principles:

● Strategically aligned;

● Competitive;

● Balanced;

● Differentiated;

● Linked to performance;

● Consistent but able to be customised; and

● Simple and fair.

Principle 1 - Strategically aligned

  • Performance measures are aligned to the Corporate Plan through a set of short and long term KPIs.
  • Performance measures are consistently and meaningfully cascaded through Business Unit strategies to individual KPIs, goals and objectives, in a timely and transparent manner.

Principle 2 - Competitive

  • Reward positioned to provide a competitive remuneration package to attract, motivate and retain quality staff.
  • Targeting the median of a defined and consistently applied peer group consisting of comparable companies for Total Aggregate Remuneration, but with flexibility to position 15% above and 10% below the median based on the requirements of the role and the skills and experience of individuals in the role.

Principle 3 - Balanced

  • Deliver a balance between fixed and variable pay considering market practice for each role and job level.
  • Variable pay will be appropriately balanced between short and long term incentives to reflect strategic goals.
  • Incentives will also balance a focus on financial and non-financial metrics. Any non-financial metrics will be strongly tied to value creation for the organisation.

Principle 4 - Differentiated

  • Provide remuneration outcomes that are materially different at varying levels of performance, allowing for up to two times upside on variable pay for top performers relative to on-target performers.

Principle 5 - Linked to performance

  • Create a clear link between variable pay and performance, aligning variable pay outcomes to a combination of corporate, business and individual objectives.
  • Ensure the combination and weighting of measures reflects the relative importance of each measure.

Principle 6 - Consistent but able to be customised

  • A consistent framework is used across the Group - to support equitable outcomes, but to also drive collaboration across the business - with the ability to customise based on business unit needs and talent market considerations.
  • Reward systems should drive a shared view and language of high performance across the Group with aligned performance rating systems, and calibration processes across the organisation.
  • Additional incentive plans will only be implemented where a Group plan (allowing for BU customisation) is not effective or is not fit for purpose.

Principle 7 - Simple and fair

  • The remuneration structure and mechanics should be simple, transparent, and easy to communicate.
  • Some level of discretion is considered fair, given potential changes to priorities over a performance period.
  • Remuneration arrangements should be applied in an equitable (though not necessarily equal) manner and be non-discriminatory.