49 AGL Energy Limited Annual Report 2012 Key points for the year ended 30 June 2012 Total Fixed Remuneration (TFR) Long-term incentive (LTI) Short-term incentive (STI) CEO’s TFR increased  by 4% The increase was informed by an independent review of external remuneration market data.  STI payout for CEO was  95% of maximum (last  year 48.75%) The STI payment represents very good progress in achieving a number of AGL’s strategic targets, including the acquisition of  Loy Yang, achievement of an Underlying Profit outcome for 2011/12 within our market guidance and improved market share  and customer service metrics. On the other hand there was some deterioration in the lagging safety indicators.  STI upon termination Mr Fraser has advised AGL that he will not assert his entitlement to any STI payment in certain circumstances. Please refer  to Termination Conditions on page 61. Positive amount  charged to LTI notional  bank accounts in 2012  (last year there was a  negative amount  charged to notional  bank accounts). (40% of ‘banked SPRs’  vested to Executives  and were converted  into AGL shares) AGL’s performance against the relevant performance hurdles was positive and resulted in the following outcomes for  the year: > Share Performance Rights (SPRs) being deposited into the Total Shareholder Return notional bank account; and > The EBIT/Funds Employed notional bank account returning to a positive balance and SPRs being deposited into the  EBIT/Funds Employed notional bank account. LTI upon termination Mr Fraser has advised AGL that he will not assert his entitlement for any unvested SPRs to vest in certain circumstances.  Please refer to Termination Conditions on page 61. CEO’s total  remuneration up by  83% (last year down  by 40%) The CEO’s total remuneration for the year increased from $3.4 million to $6.3 million which primarily reflects increases  in both short and long-term incentives as a consequence of the improved financial results for the year. This included an  improved EBIT/Funds Employed outcome and Total Shareholder Return performance for the 12 months to 30 June 2012  with AGL being in the top 14% of ASX 100 companies.  Non-executive  Directors’ remuneration Total fees paid to non-executive Directors in the year were $1.7 million, $0.34 million below the approved maximum  aggregate to non-executive Directors’ remuneration. The total fees paid represent a 12.0% increase over the previous year. Board:  AGL Board Committee:  People and Performance Committee of the Board EBIT: Earnings before interest and tax KMP: Key management personnel (those Executives who have authority and responsibility for planning, directing and controlling  the activities of AGL, either directly or indirectly) Executive: Executives other than the CEO who are KMP LTI:  Long-term incentive PDR:  Performance and development review SGC: Superannuation guarantee charge SPR: Share performance right STI: Short-term incentive TFR: Total fixed remuneration TSR: Total shareholder return VWAP Volume weighted average price Abbreviations used in this report Non-executive Directors Total Remuneration Package