1.3.3  Investment of retainedprofit share  Executive Directors' retained profit share is invested in a combination of Macquarie shares under the MEREP$^{(1)}$, and Macquarie- managed fund equity notionally invested under the Post-2009 DPS Plan$^{(2)}$.  The following table shows the current percentage allocation of retained profit share that is invested in the Post-2009 DPS Plan and  the MEREP, depending on the Executive Director’s role:  For staff other than Executive Directors, retained profit share is generally (but not exclusively) invested in Macquarie equity.  Both the MEREP and the DPS Plan are fundamental tools in Macquarie’s retention, alignment and risk management strategies,  encompassing both long-term retention arrangements and equity holding requirements. The Board or the BRC has discretion to review the percentage allocated to the Post-2009 DPS Plan and the MEREP on an annual  basis to reflect an individual Executive Director’s responsibilities and to strengthen shareholder alignment and risk management for  Macquarie and the Macquarie-managed funds.  In limited circumstances, and only with the approval of the BRC, retained profit share may be allocated to other than the Post-2009  DPS Plan or the MEREP. An example might include investment in funds or products of a specific business group where there is a  need to directly align the interests of employees with those of their specific types of clients.  Notional returns on retained profit share invested in the Post-2009 DPS Plan may be paid annually to Executive Directors. These  amounts are required to be disclosed as remuneration for Executive KMP. The notional returns are calculated based on total  shareholder return. If the notional investment of retained profit share results in a notional loss, this loss will be offset against any  future notional income until the loss is completely offset.  (1) The MEREP has a flexible plan structure that offers different types of equity grants depending on the jurisdiction in which the  participating employees are based. In most cases, the equity grants are in the form of units comprising a beneficial interest in a  Macquarie share held in a trust for the staff member (Restricted Share Units or RSUs). Where legal or tax rules make the grant of RSUs  impractical, including different tax rules for employee equity and different securities laws, equity grants will be in the form of: 1. shares  held by the staff member subject to restrictions (Restricted Shares); or 2. the right to receive Macquarie shares in the future (Deferred  Share Units or DSUs). A DSU comprises the right to receive on exercise of the DSU either a share held in the Trust or a newly issued  share (as determined by Macquarie in its absolute discretion) for no cash payment, subject to the vesting and forfeiture provisions of the  MEREP. A MEREP participant holding a DSU has no right or interest in any share until the DSU is exercised. For further details on the  MEREP structure, refer to note 33 of the 2014 Financial Statements. (2) The Post-2009 DPS plan comprises exposure to a notional portfolio of Macquarie-managed funds. Retained amounts for Executive  Directors are notionally invested over the retention period. This investment is described as ‘notional’ because Executive Directors do not  directly hold securities in relation to this investment. However, the value of the retained amounts will vary as if these amounts were  directly invested in actual securities, giving the Executive Directors an effective economic exposure to the performance of the securities.  53  Role  Post-2009 DPS Plan  (notional investment in  Macquarie-managed fund  equity)  MEREP (Macquarie shares)  CEO, Deputy CEO, CRO and Chief Operating Officer (COO)  20% 80% Executive Committee members with Funds responsibilities 50% 50% Other Executive Committee members 10% 90% Executive Directors with Funds responsibilities 50% – 75% 25% – 50% Other Executive Directors 10% – 20% 80% – 90%