Perpetual Limited — AGM Information 2005

Oct 17, 2005

2005 Annual General Meeting

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Albanya di Kabupatén Bandaran

Chairman of the Human Resources and Remuneration Committee's address to shareholders

18 October 2005

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Tanzania (Carlo Carlo Carlo)

Universitate de la pro

Perpetual's remuneration is based on five core principles:

• 1. Variable pay for all employees forms a significant part of overall remuneration;
• 1. Variable pay is linked to shareholder wealth creation;
• 1. Short-term incentive payments are uncapped;
• 1. Short-term incentive payments are made out of realised profits; and
• Equity participation, tied to challenging hurdles, is increased 5. across the organisation

Perpetual's remuneration comprises three key elements:

• 1. A fixed remuneration component;
• 1. A short-term incentive component; and
• 1. A long-term performance and retention component

1. Fixed remuneration component is:

• Set around the median level for each employee within the market range; and
• Developed for individual market ranges with reference to appropriate comparator companies i.e. Australia-based financial institutions

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2. Short term incentive (STI) is funded out of operating profits

3. Long term incentive (LTI) component

• Creates ownership mindset
• Important and growing proportion of remuneration ▓
• Challenging performance hurdles:
  • 50 per cent vests based on the company's Total Shareholder Return (TSR);
  • 50 per cent vests based on the growth in the company's earnings per share (EPS) above 10 per cent each year

Overview of Asset Managers' share plans

• Multi-year program shares vest over many years
• Vesting based on performance
• Substantial non-compete clauses constitute a career commitment to Perpetual

Other initiatives in 2005

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• Closing of Non-executive Director Retirement Benefit Scheme
• Discontinuation of Employee Share Purchase Plan, which included non-recourse loans to staff
• Launch of Tax Exempt Employee Share Plan and Tax Deferred Employee Share Plan

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