REMUNERATION REPORT Continued 4.2. REMUNERATION OUTCOMES Total Fixed Compensation FY2018 Given the focus on prudent cost management, existing KMP salaries were not reviewed this year. Outcomes Mr Cripsey’sfixed remuneration was adjusted on his appointment into the role of Chief Operating Officer, reflecting his increased responsibility. Myer recruited three newKMP, including the CEO, in FY2018. Theannual TFC for each of these executives is equal to, or lower than, the TFC paid to the previous incumbents. • MrKing was appointed on the same TFC of $1,200,000. • Mr Chadwick was appointed as Chief Financial Officerwith a TFC of $720,000. • Mr Winstanley was appointed Chief Merchandise Officer with a TFC of $795,000. Short term incentive FY2018OutcomesThe net profit gateway condition, which requires a minimum level of NPAT to be achieved before STI can be awarded, was not met in respect of the FY2018STI.Accordingly, no STI was payable to any participants. Long Term Incentive FY2015 LTIP The measures underpinning the FY2015 LTIP werealigned to the then “New Myer” strategy. Following the (granted in release of our financial results in September 2017,the performance rights granted to executives in December December 2014) 2014were tested against the EPS, relative TSR and Business Transformation hurdles. The hurdles for EPS and relative TSR were not met, and accordingly the rights subject to these performance hurdles lapsed. The performance rights subject to the Business Transformation hurdle were assessed and determined by the Board to have been partially met, and accordingly, 33 percent of these rights vested, being 8.3percent of the total number of rights granted. The Business Transformation measures compare Myer’s actual performance against the target performance for the Business Transformation Hurdle metrics set out in Myer’s business planat the time. The assessed level of performance for the Business Transformation hurdle for the period 26July 2014 to 29 July 2017 under the FY2015LTIP is shown below: Hurdle Measure Achieved Performance Loyalty • Retention of MyerOne customers x (premium & platinum members) - • Increased MyerOne sales as a x ntgeof business sales - Customer Service • Net Promoter Score NPS improvement greater than 10% • Customer conversion rate x - Space Optimisation • Target sales per square metre x - • Target profit per square metre x - Merchandise • Mix of wholesale, MEB and concession Partially achieved increase in concession sales sales • Target Operating Gross Profit x - Omni Channel • Target basket size Achieved target basket size • Increase in number of page views Increased by more than 80% FY2015 In addition to the FY2015 LTIP, in December 2014 Mr Umbers and Mr Bracken were grantedperformance Continuous rights that were subject to a continuous service condition. These additional performance rights were granted to Service Award recognise significant incentive arrangements forfeited upon leaving their previous employers to join Myer. Mr Umbers was employed by the Company at the date of testing, and therefore his rights vested. Mr Bracken’s rights wereforfeited. FY2016 LTIP Performance rights granted to KMP in January 2016under the FY2016 LTIP will be tested for vesting following (granted in the release of the Company’s financial results in September 2018, against aROFEand growth Sales Per January2016) Square Meter targets. Full details of performance against the hurdles and any vesting will be reported in the Company’s FY2019 remuneration report. 30 Myer Annual Report 2018