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## directors’ report 

on the Financial Report of Transurban City Link Limited and Controlled Entity. 

The remuneration packages of executives include a base salary, superannuation and annual performance related incentives. The package is reviewed annually by the Nomination and Remuneration Committee. The base salary reflects the size of the job and level of skill and experience of the individual. The 

annual incentive is based on performance goals set at the start of the year. 

The following table shows remuneration details for the most highly remunerated executive officers of the Company: 

<img src='content_image/90574.jpg'>

The amounts disclosed above for remuneration relating to options is the assessed fair values of options at the date they were granted to executive officers during the year ended 30 June 2001. A methodology to precisely value an option which is both subject to an exercise condition and capable of exercise on multiple dates is not available. A value for the options has been inferred from the values of similar options for which explicit valuation methodologies are available. Factors taken into account include the exercise price, the term of the option, the current price and expected price volatility of the underlying Stapled Security and the expected dividend yield. 

In addition to the above amounts, the following table sets out amounts which have been accrued in respect of payments to which the executive officers are entitled as a consequence of the completion of construction. 

