AUB Group Limited Annual Report 2023

DIRECTORS’ REPORT YEAR ENDED 30 JUNE 2023

SECTION 1 GROUP EXECUTIVE REMUNERATION FRAMEWORK (CONTINUED)

Group Executive Remuneration Mix Total remuneration includes both a fixed component and an at-risk or performance-related component, comprising both short term and long-term incentives. The Board views the at-risk component as an essential driver of a high-performance culture and one that contributes to achievement of sustainable shareholder returns. The following illustration shows the remuneration mix for the Group Executives in FY23. It has been modelled on the average of the Group Executive’s target opportunity (but excluding the one-off grant of Share Appreciation Rights (SARs) under the Outperformance Plan). The Board aims to achieve a balance between fixed and performance-related components of remuneration. The actual remuneration mix for the Group Executives will vary depending on the level of performance achieved by the AUB Group as well as the realised value of PSRs that vest and convert into shares.

CEO Remuneration Mix

Target Remuneration

36%

27%

36%

Maximum Remuneration

32%

36%

32%

Actual Remuneration

32%

35%

32%

0%

20%

40%

60%

80%

100%

LTI

Fixed

STI*

Group Executive (ex-CEO) Remuneration Mix

Target Remuneration

26%

37%

37%

Maximum Remuneration

34%

33%

33%

Actual Remuneration

34%

33%

34%

0%

20%

40%

60%

80%

100%

Fixed

STI*

LTI

* 15% of STI is deferred is deferred for 1 year, a further 15% is deferred for 2 years.

Minimum Shareholding Policy The Board endorsed during this Reporting Period a minimum shareholding policy for Group Executives to promote the alignment of executive interests with the long-term interests of shareholders and support long-term sustained value creation for AUB Group. The CEO is required to acquire AUB Group shares equivalent to 150% of base salary, and other Group Executives are required to acquire AUB Group shares equivalent to 100% of base salary. Group Executives have a five-year period commencing on the later of 1 July 2023 or the date of their appointment (hire or promotion) to meet the minimum shareholding expectation. Further details of Executive KMP shareholdings are provided in Table 9.

AUB GROUP ANNUAL REPORT 2023

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