AUB Group Limited Annual Report 2023

DIRECTORS’ REPORT YEAR ENDED 30 JUNE 2023

SECTION 1 GROUP EXECUTIVE REMUNERATION FRAMEWORK

OUR REMUNERATION PRINCIPLES

The following principles guide AUB Group’s remuneration strategy and ‘pay for performance’ philosophy, which are designed to attract, retain and motivate highly skilled individuals.

Alignment to shareholder interests & sustainable shareholder returns

Performance based – link rewards to business results and strategy

Reflect the markets we recruit from and need to be competitive in

Encourage behaviours consistent with values & deliver good partner outcomes

Robust governance with focus on risk management

SENIOR EXECUTIVE REMUNERATION STRUCTURE

FIXED

STI

LTI

FIXED REMUNERATION Base salary, superannuation & other benefits

SHORT-TERM INCENTIVE (STI) Reward for strong individual and group performance during the performance period

LONG-TERM INCENTIVE (LTI) Reward for sustainable longer-term AUB Group performance

VALUE DETERMINED BY

– Experience, position and responsibilities – Competitive fixed remuneration in the market (market median)

Achievement of annual financial and non-financial performance hurdles at a: – Group level – Business unit level – Individual level

– TSR – 40% weighting – EPS – 40% weighting – ROIC – 20% weighting

HOW DOES IT LINK WITH STRATEGY & PERFORMANCE

– Provides competitive ongoing remuneration in recognition of day-to-day responsibilities and accountabilities

– Supports annual delivery of key strategic and operational targets and to recognise and reward individual performance – Deferred STI supports retention and more closely aligns the interest of executives and shareholders

– Focuses on multi-year metrics that support sustained shareholder value creation – Delivered in equity to align the interests of executives and shareholders – Supports retention AT RISK

AUB GROUP ANNUAL REPORT 2023

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