REA Group Ltd Annual Report 2021

Remuneration Report continued REA Group Ltd | Annual Report 2021 5. Executive remuneration components (continued) Setting remuneration for new KMP (or on promotion) In addition to utilising benchmark information from our two comparator groups, when setting remuneration levels for new KMP (or on promotion), the Board consider the skills and experience of the new KMP (relative to the outgoing KMP where applicable) along with their current remuneration package (where applicable). 5.2 Short term incentive arrangements The following table summarises the key components, operation and outcomes of the Group’s 2021 STI Plan and, as provided in the remuneration mix section, this table demonstrates annualised on-target performance for the CEO and CFO in their current roles: Short Term Incentive Summary KMP participants CEO and CFO Award type 30% payable in deferred shares with the balance paid in cash Performance period One-year performance period beginning 1 July 2020 and ended on 30 June 2021 When are performance conditions tested? – Performance against financial measures are determined in-line with approval of the Financial Statements at the end of the financial year. – Performance against non-financial measures within individual KPIs are determined after a review of executive performance by the CEO, in consultation with the HR Committee and in the case of the CEO, by the Board. Performance metrics and weightings Target 1 $1,100,000 $524,000 Maximum 2 $2,200,000 $1,048,000 Relationship between performance and payment Financial measures – level of performance % of target incentive awarded* Below Threshold 0% Threshold 50% Target 100% Stretch 200% * Incremental payment is made between Threshold and Target, as well as Target and Above Target points. Individual performance is determined based on performance against KPIs with the individual component paying out between 0% and 200% of target. Calculation of outcome STI Plan 2021 1 Amount that would be paid for delivering on-target performance. CEO STI target adjusted from $800,000 with effect from 1 January 2021. 2 Amount that would be paid for delivering stretch performance. 25 % 50% 25% CFO Individual KPIs EBITDA Revenue 35% 30% 35% CEO Revenue Outcome EBITDA Outcome Individual Outcome STI Plan Outcome + + = 52 Remuneration Report