macquarie.com.au  2014 Annual Financial Report  Macquarie Group Limited and its subsidiaries  continued  for the financial year ended 31 March 2014  Directors’ Report  –  Remuneration Report  1.3.2  Profit shareretention levels  Standard retention rates by role  A percentage of each Executive Directors' annual gross profit share allocation will be retained by Macquarie (retained profit share).  The percentage is set according to their role. The Board has discretion to change the percentage of profit share allocations retained on an annual basis to meet changing market  conditions as well as to comply with regulatory and corporate governance guidance, provided that the retention percentage is at  least 30 per cent for Executive Directors. This year, the Non-Executive Directors have exercised their discretion to increase the retention rate and to amend the vesting and  release period for FY2014 profit share to reflect the impact of the SYD Distribution on MEREP to apply to Executive Key  Management Personnel and certain senior executives. This is separate from the table below which reflects standard retention. In addition, the Non-Executive Directors have exercised their discretion in relation to certain employees to amend their retention  rates to reflect specific business and market conditions, taking into account both the percentage retained as well as the period for  which it is retained. Role  %  CEO  70% Deputy CEO  50% Other Executive Committee members  50% – 60%  Designated Executive Directors  50% – 60%  Other Executive Directors  40% – 70%  Staff other than Executive Directors  25% – 60%  52 