Macquarie Group Limited and its subsidiaries  2014 Annual Financial Report  macquarie.com.au  Under both performance hurdles, the objective is examined once only, effectively at the calendar quarter end immediately before  vesting. If the condition is not met when examined, the PSUs due to vest will not be exercisable upon vesting.  The PSUs which vested in July 2013 comprised the third tranche of those granted in 2009, the second tranche of those granted in  2010 and the first tranche of those granted in 2011. Tranche 3 of the 2009 grant and Tranche 2 of the 2010 grant did not become  exercisable due to the performance hurdles not being met. Tranche 1 of the 2011 grant did not become fully exercisable due to the  performance hurdles not being fully met. As a result:  PSUs that did not meet performance hurdles expired. The following table summarises key features of the employment contracts for Executive Committee members including the CEO: (1)  Subject to compliance with local regulatory and legal requirements. In Australia, Executive Directors given notice by Macquarie may  receive an additional week’s notice if they are over 45 years of age and have more than two years’ continuous service at the time of the  termination of their employment.  58  1.3.7  No special contractual termination payments  EPS CAGR Hurdle ROE Hurdle  PSU Tranche  Macquarie result  (for vesting period)  Hurdle  Outcome  Macquarie result  (for vesting period)  Hurdle  Outcome  2009 Tranche 3  (5.1%)  At 9%  100% not  exercisable  8.0%  > 50$^{th}$  percentile rank  100% not  exercisable  2010 Tranche 2  (7.8%)  At 9%  100% not  exercisable  7.2%  > 50$^{th}$  percentile rank  100% not  exercisable  2011 Tranche 1  (5.7%)  At 9%  100% not  exercisable  6.5%  > 50$^{th}$  percentile rank  56%  exercisable  Testing of hurdles  Length of contract  Permanent open-ended  Remuneration review period  1 April to 31 March annually  Profit share participation  Executive Committee members are eligible to be considered for a profit share allocation  which ensures that a large part of their remuneration is ‘at risk’. Refer to sections 1.3.1- 1.3.5 for details.  PSU participation  Executive Committee members are eligible to receive PSUs. Refer to Section 1.3.6 for  details.  Termination of employment  Termination of employment by Macquarie or the Executive Committee member requires no  more than four weeks notice$^{(1)}$. Directors’ Report  –  Remuneration Report  for the financial year ended 31 March 2014  continued 