REA Group Ltd Annual Report 2021

Annual Report 2021 | REA Group Ltd Remuneration outcomes in FY21 – moderate outcomes reflecting solid performance With respect to the annual salary reviews conducted at the end of calendar 2020, the following changes to KMP remuneration were approved: – CEO: – in recognition of Mr Wilson’s established tenure in the role of CEO, performing at a high level and leading the company through significant growth (in revenue, profit and share price), and in consideration of his remuneration relative to market peers, his fixed annual remuneration (FAR) was increased effective 1 January 2021 to $1,500,000. H is STI and LTI opportunities were also increased, at target, from 61% of fixed remuneration to 73% of fixed remuneration. In line with REA policy, these changes have resulted in an increase to the incentive opportunities available to the CEO. This includes an additional $300,000 worth of rights which will be granted under the LTI Plan 2023 (and subject to the same terms and conditions as the other rights for the LTI Plan 2023). This will be the subject of a resolution at the upcoming AGM and separate from the resolution relating to the LTI Plan 2024. – CFO: – Based on a review of market peers, Ms Hopkins’ long-term incentive (LTI) target was increased by 11.5% with Fixed Remuneration and short-term incentive (STI) targets remaining unchanged for FY21. Changes to directors’ fees for FY22 In line with our historical approach, we undertook a review of directors’ fees. Independent advice from external consultants was part of this review, which highlighted that our directors’ fees, in particular for our Chairman, have fallen below market peers. In order to ensure that REA remains able to attract and retain directors of appropriate skill and experience, we resolved to make an 8% increase in directors fees and a 16% increase in the Chairman’s fees to bring them more into line with market. Further details will be disclosed in the FY22 remuneration report. The HR Committee continues to believe that REA has a robust and fit for purpose remuneration framework that, pandemics aside, serves the organisation well. It appropriately balances competitive fixed pay levels to reward core performance, has a short-term incentive (STI) that underpins the achievement of the annual budget and strategic plan, and a long-term incentive (LTI) that is focused on delivering top and bottom-line growth. I invite you to read our report, to support the Board and the Committee in its endeavours to attract, retain and motivate a top team of talented executives and, as always, to provide us with any feedback on this report or our remuneration practices. Finally, I would like to take this opportunity to thank Kathleen Conlon for her considerable work as previous Chair of the Human Resources Committee. Yours sincerely, Mr Nick Dowling Chair Human Resources Committee Year in review Directors’ Report Financial Statements Remuneration Report Sustainability Our Leaders 45