macquarie.com.au  2014 Annual Financial Report  Macquarie Group Limited and its subsidiaries  The Board approves (on BRC recommendation)  BRC approves (on behalf of the Board)  Executive Remuneration Policy and Framework Recommendations  GLYPH<150> The  Remuneration Policy , its effectiveness and its compliance  with legal and regulatory requirements  GLYPH<150> The appropriate levels of delegated responsibility to  management for remuneration-related decisions  GLYPH<150> The profit share methodology and any adjustments  Adjustments to the profit share pool as a result of the Non- Executive Directors exercising their discretion  GLYPH<150> Identification of the Designated Executive Director  population, Code Staff population$^{(1)}$, Hong Kong  Covered Staff$^{(1)}$, other persons whose activities may  affect the financial soundness of Macquarie, and senior  risk and financial control staff  GLYPH<150> The profit share pool, calculated in accordance with the  Board-approved methodology  GLYPH<150> The percentage of Executive Directors’ retained profit  share allocated to Macquarie shares and Macquarie- managed fund equity  GLYPH<150> The implementation of the  Remuneration Policy ,  including an annual review of compliance with the  Executive Director minimum shareholding requirements  Executive Remuneration Re commendations  GLYPH<150> Individual remuneration recommendations$^{(2)}$ for:  GLYPH<150> Executive Committee members  Designated Executive Directors  GLYPH<150> Staff covered under specific regulatory requirements  Senior risk and financial control staff GLYPH<150> The total PSU pool available for Executive Committee  members  GLYPH<150> The continued vesting or otherwise of retained profit share  amounts for employees covered under the Malus provisions  GLYPH<150> All individual profit share recommendations for other  Executive Directors  GLYPH<150> The standard number or value of promotion equity  grants to Director-level staff  Non-Executive Director Remuneration GLYPH<150> The remuneration framework for the Non-Executive Directors  of Macquarie and MBL  GLYPH<150> Remuneration recommendations for Non-Executive Director  fees (subject to the maximum aggregate amount being  approved by shareholders)$^{(3)}$  (1) Code Staff under the UK Regulators’ Remuneration Code, Covered Staff under the Hong Kong Monetary Authority’s (HKMA) Guideline  on a Sound Remuneration System.  (2) Including base remuneration, profit share and PSUs where applicable, with the proviso that PSU grants to Executive Voting Directors  (including the CEO) must be approved by shareholders at the Annual General Meeting.  (3) The Corporations Act 2001 (Cth)(the Act) contains an exception to the general prohibition on voting on a matter in which a Director has  a material personal interest in respect of a director’s remuneration as a director.  68  Directors’ Report  –  Remuneration Report  for the financial year ended 31 March 2014  continued 