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18 June 2009
CEO Terms of Employment
Lend Lease Corporation Limited (“Lend Lease”) has today confirmed the agreed terms of continued employment of Steve McCann as Chief Executive Officer (“CEO”).
Fixed remuneration
Base pay of A$1,600,000 per annum, from the date of his appointment as CEO on 15 December 2008. This amount includes superannuation contributions. In addition, non-monetary benefits for a motor vehicle, parking, life insurance and applicable fringe benefits tax, are provided.
Short term incentives:
For the 2009 financial year, Mr McCann will be eligible for a target annual bonus of 130% of Base Pay (pro-rated for the period employed as CEO). The Board will review Mr McCann's contribution and performance at the end of the financial year taking into account those factors the Board considers to be most relevant in the current changing market environment. These will include the Company's financial performance, progress in repositioning the Group during the current market cycle for future success, progress in further strengthening the Group's capital and liquidity position and in development of the senior leadership team.
Approximately 30% of any bonus will be in the form of Lend Lease shares restricted for a period of one year.
Long term incentives
Mr McCann will be eligible to participate in the Long Term Incentive Plan (“LTIP”) in accordance with its rules. For the 2009 financial year, Mr McCann’s award will be 130% of Base Pay (pro-rated for the period employed as CEO).
The awards have a performance period of at least three years. At least two-thirds of the awards are subject to performance hurdles including a relative TSR (total shareholder return) performance hurdle. Mr McCann will only be entitled to the maximum award payment in respect of this performance hurdle if the relative TSR performance is at or above the upper quartile of the peer group.
Termination of employment
Mr McCann’s employment can be terminated by Lend Lease on 12 months’ notice. In certain circumstances including serious misconduct, Lend Lease may terminate without notice. Mr McCann must give six months’ notice should he wish to terminate the employment.
On termination by the Company, Mr McCann will be entitled to receive in respect of the financial year in which termination occurred:
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 | a pro-rated amount of the target annual bonus unless the Board determines that a higher or lower level of achievement of applicable performance hurdles should apply |
 | a pro-rated award payment under LTIP awards and, in respect of the most recent LTIP award prior to termination, the pro-rata period is extended by a period of 12 months |
For more information contact:
Sally Cameron
Lend Lease Corporation
Tel: 02 9236 6464stock exchange
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