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ESR Group Limited Annual Report 202475STRATEGIC REPORTSCORPORATE GOVERNANCEFINANCIAL STATEMENTSSHORT-TERM INCENTIVES (%u201cSTI%u201d)ElementsPurposeTo reward the achievement of annual targets aligned to the delivery of sustainable outcomes.Maximum opportunityPercentage of variable pay of KMPs%u2019 total remuneration package is up to 18%.Performance measuresMeasurable Targets (70% component)%u2022%u0009 PerformanceoftheCompanyandGroup(e.g., profit after tax and minority interest, earnings, earnings before interest, taxation, depreciation and amortisation)%u2022%u0009 Performanceofthefunds,investmentvehiclesandpublicREITsmanagedbytheGroup%u2022%u0009 Organisational/businessunits%u2019goalsQualitative Targets (30% component)%u2022%u0009 ESGtargets/metrics(e.g., Buildings%u2019 Energy Efficiencies and Renewable Capacity Installed)%u2022%u0009 OtherattributessuchasdemonstrationoftheGroup%u2019scorevalues(i.e., Entrepreneurial, Excellence, Inclusion, and Sustainability)Performance assessmentThe Board adopts a robust approach to determining executive remuneration outcomes, using judgement and oversight to consider a range of financial and nonfinancial targets.At the start of the year, the key performance indicators for the KMPs are discussed and agreed to ensure that such indicators are specific, measurable, result-oriented and time bound.The Remuneration Committee proposes the recommended STI award, for approval from the Board. The Remuneration Committee%u2019s recommendation is determined through a review of the Company%u2019s performance and the contributions by the Directors during the fiscal year, and in consultation with an independent remuneration consultant where required.DeliveryCashLeaver provisionsOn termination for cause or due to gross negligence, all STI awards are forfeited.