macquarie.com.au  2014 Annual Financial Report  Macquarie Group Limited and its subsidiaries  Directors’ Report  –  Remuneration Report  for the financial year ended 31 March 2014  continued  Introduction  Macquarie’s consistent approach to remuneration has served it well over the long-term, evolving incrementally over time to ensure it  continues to meet its overriding objective of generating superior shareholder returns, while having due regard to risk. As a matter of good corporate governance, Macquarie’s Board of Directors (the Board) and the Board Remuneration Committee  (the BRC) review the remuneration framework annually. Following this year’s review, the Board’s view is that:  Macquarie’s remuneration approach remains appropriate and creates a strong alignment of staff and shareholders’  interests, while prudently managing risk. The Board support this view for the following reasons:  Each of these conclusions is outlined in turn.  1. Macquarie’s remuneration framework, with only incremental change, continues to support the overarching objective of  delivering superior value for shareholders over the long-term while prudently managing risk  2. Remuneration outcomes are aligned to business results and shareholder returns 3. Macquarie’s performance has been strong relative to peers  4. Strong remuneration governance continues to be exercised  5. Non-Executive Director remuneration continues to recognise their independent role.  48 