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## 2 Remuneration outcomes are aligned to business results and shareholder returns 

Macquarie has delivered strong financial results in FY2014. While NPAT, EPS and dividends have all significantly increased compared to FY2013, total compensation does not reflect the same rate of growth. Shareholder returns have also been strong, both over the past year and over the longer term. 

The Directors are of the view that the remuneration outcomes for senior executives are appropriately aligned to their businesses’ performance, Macquarie's performance and the interests of shareholders. 

To demonstrate the link between pay and performance, a comparison of performance measures and executive remuneration outcomes allows shareholders to see how the remuneration for Executive KMP is aligned with performance. Whilst remuneration outcomes for Executive KMP varied according to their individual performance and the performance of their business, the analysis shows that for both the CEO and Comparable KMP, remuneration, both including and excluding earnings on retained profit share amounts, has not increased to the same extent as NPAT, EPS,TSR and total dividends. This reflects the way performance takes a range of factors into consideration. 

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(1) Includes the special dividend component of 116 cents per share in relation to the SYD distribution in January 2014. (2) 

Earnings on restricted profit share reflect the investment performance of the assets in the Macquarie-managed funds in which prior year retained profit share been notionally invested. (3) 

Comparable KMP are Executive KMP who were members of the Executive Committee for the full year in both FY2014 and FY2013. 

