REA Group Ltd Annual Report 2021

Annual Report 2021 | REA Group Ltd 4. Link between group performance, shareholder wealth and executive remuneration (continued) The table below sets out the details of the percentage performance achieved and percentage vested against the applicable LTI Plan. Refer to section 5.6 for the percentage of total remuneration that consists of performance rights. Plan Grant date Vesting date 1 Value per performance right at grant date 2 Revenue target % achieved EPS target % achieved % vested LTI Plan 2021 (Plan 12) 1 July 2018 1 July 2021 $85.44 4.7% 5.2% 0% LTI Plan 2021 (Plan 12) 7 January 2019 1 July 2021 $69.05 4.7% 5.2% 0% LTI Plan 2022 (Plan 13) 1 July 2019 1 July 2022 $97.55 To be determined – LTI Plan 2022 (Plan 13) 13 January 2020 1 July 2022 $107.30 To be determined – LTI Plan 2023 (Plan 14) 28 June 2021 1 July 2023 $165.77 -$237.51 To be determined – 1 Subject to Board approval of the performance hurdles being met. 2 Value per grant date calculated using the Black Scholes model. The table below sets out the details of the percentage performance achieved and percentage vested against the applicable Recovery Incentive Plan. Refer to section 5.6 for the percentage of total remuneration that consists of performance rights. Plan Grant date Vesting date 1 Value per performance right at grant date 2 Relative TSR target % achieved EBITDA target % achieved Strategic targets % achieved % vested Recovery Incentive Plan 2021 - 2022 (tranche 1) 17 November 2020 1 July 2021 $128.57 -$142.35 100% 100% 93.3% 96.7% Recovery Incentive Plan 2021 - 2022 (tranche 2) 17 November 2020 1 July 2022 $126.36 -$140.95 To be determined – 1 Subject to Board approval of the performance hurdles being met. 2 Value per grant date calculated using the Black Scholes model. 5. Executive remuneration components 5.1 How REA Group determines appropriate remuneration levels As the Group continues to grow and diversify into different markets and business lines, it is important to review to ensure that the remuneration levels support the Group in attracting and retaining high-calibre talent within what is a competitive market. Executive remuneration is therefore reviewed on an annual basis. Market positioning How much is paid to each executive depends on a number of factors including the scope of their role and their overall contribution to the Group but, as a starting position, REA compares current fixed remuneration to the 50th percentile and target total remuneration to a position between the 50th and 75th percentiles in the market. This aligns with the Group’s principle of rewarding for above threshold performance. Benchmarking methodology The HR Committee utilises market data provided by external consultants as part of the review process. Remuneration levels are compared to the following two comparator groups: 1. S ize-based comparator group having regard to both revenue and 12-month average market capitalisation (excluding companies from outside our market for talent, e.g. resources sector) 2. All companies within the ASX10-50 and ASX35-85 respectively This methodology provides the Group with a balanced approach factoring in both company size and general ASX market practice into remuneration decision making. Full details of remuneration received during the 2021 financial year are detailed in section 5.6. Year in review Directors’ Report Financial Statements Remuneration Report Sustainability Our Leaders 51