Macquarie Group Limited and its subsidiaries  2014 Annual Financial Report  macquarie.com.au  Directors’ Report  –  Remuneration Report  for the financial year ended 31 March 2014  continued  1.3.6  Performance share units (PSUs)  Executive Committee members are the only group of staff eligible to receive PSUs. Since their introduction, PSUs have been  structured as DSUs with performance hurdles. Holders have no right to dividend equivalent payments before the PSUs vest. In all  other respects, holders of these PSUs have the same rights as holders of DSUs. There is no exercise price for PSUs. The following  table summarises the key terms of PSUs and the performance hurdles.  (1)  The allocation of PSUs to the CEO, who is an Executive Voting Director, is subject to shareholder approval at the Annual General  Meeting.  Determination  GLYPH<150> The Board approves the value of PSUs to be allocated to Executive  Committee members each year  Allocation  GLYPH<150> The allocation to individuals$^{(1)}$ is based on: GLYPH<150> role scope and complexity  financial and non-financial performance assessment against a range  of factors including financial results, risk management, business  leadership and people and organisational leadership  GLYPH<150> upholding Macquarie’s  Goals and Values Vesting  GLYPH<150> Since 2012, PSUs will vest in two equal tranches after years three and four  from the deemed vesting commencement date (typically 1 July in the year  of grant), and are exercisable on the achievement of performance hurdles  (refer 1.3.6.1)  GLYPH<150> Grants made prior to 2012 vested in three equal tranches after two, three  and four years. To ensure continued alignment with shareholders post termination, in cases of  genuine retirement, PSUs continue to vest in accordance with the above vesting  schedule and remain subject to the same performance hurdles. The Board or its  delegate has the authority to accelerate the vesting of, or to forfeit PSUs, when an  Executive Committee member leaves Macquarie. To date, this discretion has not  been exercised. Upon leaving  Macquarie  56 