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## Directors’ Report –  Remuneration Report 

for the financial year ended 31 March 2014 

continued 

## 1.3.2 Profit shareretention levels 

A percentage of each Executive Directors' annual gross profit share allocation will be retained by Macquarie (retained profit share). The percentage is set according to their role. 

The Board has discretion to change the percentage of profit share allocations retained on an annual basis to meet changing market conditions as well as to comply with regulatory and corporate governance guidance, provided that the retention percentage is at least 30 per cent for Executive Directors. 

This year, the Non-Executive Directors have exercised their discretion to increase the retention rate and to amend the vesting and release period for FY2014 profit share to reflect the impact of the SYD Distribution on MEREP to apply to Executive Key Management Personnel and certain senior executives. This is separate from the table below which reflects standard retention. 

In addition, the Non-Executive Directors have exercised their discretion in relation to certain employees to amend their retention rates to reflect specific business and market conditions, taking into account both the percentage retained as well as the period for which it is retained. 

## Standard retention rates by role 

<img src='content_image/287411.jpg'>

