Macquarie Group Limited — Remuneration Information 2009

Mar 30, 2009

Macquarie Group Limited ABN 94 122 169 279

No.1 Martin Place Telephone (61 2) 8232 3333 Sydney NSW 2000 Facsimile (61 2) 8232 7780 GPO Box 4294 Internet http://www.macquarie.com.au Sydney NSW 1164 AUSTRALIA

ASX/Media Release

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MACQUARIE GROUP PROPOSES CHANGES TO REMUNERATION SUBJECT TO SHAREHOLDER APPROVAL

SYDNEY, 31 March 2009 - The Board of Directors of Macquarie Group Limited (Macquarie) today announced changes to the Group’s remuneration arrangements consistent with global remuneration and regulatory trends.

The proposed changes will be subject to approval by shareholders at the July 2009 AGM and will primarily apply to more than 300 of its most senior employees, the Executive Directors (EDs), including the Chief Executive Officer (CEO) and members of the Executive Committee. If approved by shareholders, the changes will apply to remuneration for the current year ended 31 March, 2009 as well as future years.

While the proposed changes reflect recent remuneration trends, they remain consistent with Macquarie’s longstanding approach where staff profit share is linked to profitability and is individually assessed with regard to a variety of factors including contribution to profit, use of capital, funding and risk.

The proposals expand on modifications to remuneration announced in February 2008, which included an increase in the portion of performance-based profit share deferred and allocated as equity for the CEO and other members of the Group’s Executive Committee. They further enhance staff and shareholder alignment. The key features of the changes are:

• Profit share paid out in cash will be reduced and the percentage of retained profit share will be increased.

• For the CEO, as announced last year, the cash component of profit share will fall from 70% to 45%. 55% of profit share will be retained. Accordingly, approximately 60% of overall compensation (including options) will be retained.

• For members of the Executive Committee (other than the CEO), the cash component of profit share will fall from 60% to 50%. 50% of profit share will be retained. Accordingly, approximately 55% of overall compensation (including options) will be retained.

• For other EDs, the cash component of profit share will fall from 80% to 50%. The remaining 50% will be retained in the form of fully paid ordinary Macquarie shares and

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Macquarie Group Limited

Macquarie-managed fund equity. EDs will not receive future option grants. Accordingly, on average the amount of retained overall compensation will increase from 38% to 50%.

• The vesting and payout schedule for retained profit share has been changed.

• Currently for the CEO 35% of retained profit share vests after three years and 20% vests between five and ten years. In future all retained profit share will vest from three to seven years.

• Currently for Executive Committee 20% of retained profit share vests after three years and 20% vests between five and ten years. In future all retained profit share will vest from three to seven years.

• Currently for EDs, 20% of profit share vests between five and ten years. In future, the retained 50% of profit share will vest from three to seven years.

• Under the new proposal the vesting and payout periods will be aligned.

• For EDs, retained profit share will be fully invested in a combination of fully paid ordinary Macquarie shares and Macquarie-managed fund equity.

• to reflect an individual executive’s responsibilities.

• to strengthen shareholder alignment for Macquarie and the Funds.

• A departing ED’s unvested retained profit share will only be paid out in the case of genuine retirement and will be subject to forfeiture provisions. The current six month period after which a departing ED’s retained profit share is paid out will lengthen.

• Profit share from all but the last two years will be paid out after six months.

• Profit share from two years ago will be paid out after one year.

• Profit share from one year ago will be paid out after two years.

• The payment of the last two years of a departing ED’s unvested retained profit share will be subject to forfeiture if it is found that the individual has acted in a way that damages Macquarie Group, including but not limited to acts that lead to a material financial restatement, a significant financial loss or any significant reputational harm to the Group or its businesses.

• There will be a transitional arrangement that will align the old and new schemes. The required retained balances for the new scheme will be calculated. Any surplus in retained funds will be invested in fully paid ordinary Macquarie shares and will vest in approximately one year’s time.

• For all staff other than EDs, any retained profit share will be delivered in future in fully paid ordinary Macquarie shares. No changes are proposed to the vesting or retention arrangements for these staff.

• Overall, new options granted will be substantially reduced.

If approved by shareholders, it is currently estimated that approximately $500 million of primarily prior years’ and some current year retained profit share will be applied to the grant of fully paid ordinary Macquarie shares in 2009. The Macquarie equity participation is proposed to be provided via issue of new shares, on-market share purchases or a combination of both at the discretion of the Board and to be determined at the time having regard to all factors including prevailing market conditions.

Equity participation satisfied through the issue of new shares will result in a corresponding increase in capital. Equity participation satisfied through shares purchased on market would result in an initial reduction of capital. There is no impact on the 2009 full year result as a consequence of the proposal. If the proposal is approved by shareholders, the impact of the new arrangements will be brought to account over the vesting period in accordance with International Financial Reporting Standards. The net impact on the profit and loss over time is nil.

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Macquarie Group Limited

Further details of the proposed new arrangements will be provided in Macquarie’s 2009 Annual Report and the Notice of Meeting for the 2009 AGM.

Contacts:

Media

Lisa Jamieson +612 8232 6016

Investor Relations

Stuart Green +612 8232 5008

Paula Hannaford +612 8232 4102

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ATTACHMENT - COMPARISON OF PROPOSED AND CURRENT ARRANGEMENTS

	Current Arrangements	Proposed Arrangements
Chief Executive Officer	� Profit Share – 55% retained. � 35% of retained profit share vests in year three and is retained in the form of fully paid ordinary Macquarie shares. � 20% of retained profit share vests from 5 to 10 years and is notionally invested in Macquarie-managed fund equity under the Director’s Profit Share (DPS) Plan. � Minimum Shareholding - satisfied through the equity retention arrangements. � Options - Eligible for options with a performance hurdle. Vesting in years 2, 3 and 4.	� Profit Share – 55% of retained profit share vests from 3 to 7 years. � Investment mix may include fully paid ordinary Macquarie shares* as well as Macquarie-managed fund equity. � Minimum Shareholding - satisfied through the new equity retention arrangements. � Options - Eligible for options with a performance hurdle. Vesting in years 2, 3 and 4.
Executive Committee members	� Profit Share – 40% retained. � 20% of retained profit share vests in year three and is retained in the form of fully paid ordinary Macquarie shares. � 20% of retained profit share vests from 5 to 10 years and notionally invested, to varying degrees, depending on role, in Macquarie-managed fund equity and cash under the DPS Plan. � Minimum Shareholding - satisfied through the equity retention arrangements. � Options - Eligible for options with a performance hurdle. Vesting in years 2, 3 and 4.	� Profit Share – 50% of retained profit share vests from 3 to 7 years. � Investment mix may include fully paid ordinary Macquarie shares* as well as Macquarie-managed fund equity. � Minimum Shareholding - satisfied through the new equity retention arrangements. � Options - Eligible for options with a performance hurdle. Vesting in years 2, 3 and 4.
Executive Directors	� Profit Share – 20% of retained profit share vests from 5 to 10 years and notionally invested, to varying degrees, depending on role, in Macquarie- managed fund equity and cash under the DPS Plan. � Minimum Shareholding - Required to hold shares to the value of at least 5% of total profit share over the last 5 years. � Options - Eligible for options with a performance. Vesting in years 2, 3 and 4.	� Profit Share – 50% of retained profit share vests from 3 to 7 years. � Investment mix may include fully paid ordinary Macquarie shares as well as Macquarie-managed fund equity. � Minimum Shareholding - satisfied through the new equity retention arrangements. � No options – 50% of profit share will be retained in the form of fully paid ordinary Macquarie shares & Macquarie- managed fund equity.

Macquarie Group Limited

	Current Arrangements	Proposed Arrangements
Division Directors/ Associate Directors	� Retention of 25% of annual profit share amounts above certain thresholds. Vesting in years 2, 3 and 4. � Eligible for options for promotion and performance.	� Retention of 25% of annual profit share above certain thresholds delivered via fully paid ordinary Macquarie shares. No change to thresholds or vesting period. � No options – Up to 25% of profit share will be retained in the form of fully paid ordinary Macquarie shares. � Replace with fully paid ordinary Macquarie shares* for promotion and new hires.
Non- Director Staff	� Retention of 25% of annual profit share amounts above certain thresholds. Vesting in years 2, 3 and 4.	� Retention of 25% of annual profit share above certain thresholds delivered via fully paid ordinary Macquarie shares*. No change to thresholds or vesting period.

• How Macquarie shares are delivered may differ from country to country depending on legal requirements.