Transurban Corporate Report FY25 Remuneration report
FY25 Executive KMP STI outcomes The STI performance outcomes and awards for the CEO and Executive KMP, are provided in the following table.
STI as a % of maximum opportunity
STI Deferred equity ($) 1
STI as a % of target opportunity
Executive KMP
STI Outcome ($)
STI Cash ($)
Current M Jablko
2,225,000 = 1,000,000 = 420,000 = 640,000 = 850,000 =
1,112,500 + 500,000 + 210,000 + 320,000 + 425,000 +
1,112,500
72 %
108 %
H Byrne
500,000
74 %
111 %
D Clements 2
210,000
60 %
90 %
N Green
320,000
57 %
85 %
S Moorfield
425,000
74 %
111 %
Former H Wehby 3
NA =
NA +
NA
NA
NA
LTI outcomes Value of FY22 LTI plan performance awards vested and lapsed in FY25 The FY22 LTI plan was the first award following the Board approval to extend the performance period from three years to four years. To support the transition to a four-year performance period, the FY22 LTI plan consisted of two tranches. Tranche 1 (50% of awards granted) has a three-year performance period (1 July 2021 to 30 June 2024) and Tranche 2 (50% of awards granted) has a four-year performance period (1 July 2021 to 30 June 2025). Tranche 1 of the FY22 LTI plan was granted on 28 October 2021 with a single performance measure of relative TSR and covered the performance period from 1 July 2021 to 30 June 2024, vested on 26 August 2024. The overall vesting outcome of the performance tests was as follows:
Value of FY22 LTI plan performance awards to vest/lapse in FY26 Second tranche (50%) of the FY22 LTI plan (1 July 2021 to 30 June 2025) is scheduled to vest in August 2025. This plan has a single performance measure of relative TSR, with testing of the performance hurdle indicating that 57% of awards will vest for eligible participants. Details of vesting for each Executive KMP will be included in next year’s Remuneration Report. LTI grants Performance awards granted in FY25 The FY25 LTI Plan has a four-year performance period (1 July 2024 to 30 June 2028), with 50% subject to relative TSR and 50% subject to FCF (excluding Capital and Cash Reserve Releases) per security growth rate. This grant is allocated based on a full-face value methodology.
Looking ahead – performance awards to be granted in FY26 LTI performance awards to be granted in FY26 will have a four-year performance period (1 July 2025 to 30 June 2029), with 50% subject to relative TSR and 50% subject to FCF 4 per security growth. This grant is allocated based on a full-face value methodology. The FY26 LTI performance awards for the FCF 4 tranche will have a compound annual growth rate (CAGR) range 5 which determines 50% and 100% vesting. The annual growth rate may be higher or lower in any given year, however translates to an aggregate FCF as shown below. The aggregate FCF growth associated with the FY26 LTI plan excludes the impact of any corporate tax payments expected to commence during the performance period as the timing of commencement is uncertain, however, includes the reduced contribution from the M5 West concession to 50% ownership from 100% after it transfers to WCX in FY27. The reduced contribution from the M5 West concession results in approximately 1.5% 6 lower CAGR over the performance period.
Vesting outcome %
Performance measure
Results
Transurban ranked 18th out of 27 companies (35th percentile)
TSR (100%)
0
Overall vesting
FCF growth based on FY25 distribution
0%
Aggregate FCF (cps)
Base
65.0 cps
50% vesting 100% vesting
4.0% CAGR 6.0% CAGR
287.1 301.4
1 Securities are subject to a two-year restriction period following the end of the performance year. Securities will be granted in October 2025 2 D Clements’ STI outcome reflect the period he was an Executive KMP 3 H Wehby resigned from Transurban Group on 20 August 2024 and therefore is not eligible for an STI in FY25 4 References to FCF in relation to FY26 LTI Plan exclude Capital and Cash Reserve Releases and corporate tax payments
5 The FCF (excluding Capital and Cash Reserve Releases and corporate tax payments) per security target range is calculated taking into account each of the FCF budget and forecasts over the four year performance period and determining the CAGR required to achieve the four year aggregated FCF. The calculation specifically excludes any contributions from Capital and Cash Reserve Releases and corporate tax payments. Capital Releases refers to the injection of debt into Transurban assets, thereby releasing equity, and Cash Reserve Releases refers to the permanent movement in cash reserves that were required under relevant concession and/or loan agreements. These are non-IFRS measures 6 The reduced contribution from the M5 West concession results in approximately 1.5% lower CAGR over the performance period based on FY25 free cash contribution
90
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