Red Bubble Annual Report 2022

3.3 Remuneration Benchmarking The quantum of both Fixed Salary and the Total Remuneration Package are generally positioned having consideration for benchmarking data, relevant market conditions and sentiment, the trajectory of the company’s growth, strategic objectives, competency and skill set of individuals, scarcity of talent, changes in role complexities and the geographical spread of the company and of the relevant talent pool. Market benchmarks are undertaken independently and set with reference to market capitalisation, and with reference to industry sector and levels of business complexity, as determined by external advisors, in collaboration with the Committee each year. 3.4 Clawback of Remuneration In the event of serious misconduct or a material misstatement of RB Group’s financial statements, the Board has the discretion to reduce, cancel or claw back any unvested equity or other long-term incentives. 3.5 Standard Employment Arrangements Executives are employed on open-ended individual employment agreements that set out the terms of their employment. Each Agreement varies according to the individual Executive but typically includes: • Termination provisions incorporating six-month notice periods (to manage business continuity risk during any executive transition); • The Board may in certain circumstances apply discretion to approve payment of up to six months’ salary in lieu of notice; • Performance, Intellectual Property and confidentiality obligations on the part of both the employer and employee; • Limited non-solicitation and post-employment restriction provisions; and • Eligibility to participate in the RB Group RECM (or other transitional compensation plans). 4. Company Performance in FY2022 4.1 Performance against Financial Metrics Key indicators(1) FY2022 FY2021 FY2020 FY2019(2) FY2018(3) CAGR(4) Gross Transaction Value (GTV) ($’m) 629.6 700.7 474.0 328.0 231.3 28% Total Revenue ($’m) 573.4 657.3 416.3 307.0 218.7 27% Marketplace Revenue ($’m) 482.6 553.3 348.9 256.9 182.8 27% Artist Revenue ($’m) 90.8 104.0 67.4 50.1 35.9 26% Gross profit (GP) ($’m) 183.1 222.7 134.4 94.5 63.9 30% Gross profit after paid acquisition (GPAPA) ($’m) 106.7 151.5 94.5 67.5 47.1 23% Earnings before Interest, taxes, depreciation and amortisation (EBITDA) ($’m) (11.2) 52.7 5.1 (2.0) (7.4) N/A Cash balance ($’m) 89.1 98.7 58.1 29.0 21.2 43% Share price at year end ($) 0.90 3.61 2.06 0.91 1.57 (13%) (1) T he non-IFRS metrics in the table above such as GTV, GP and GPAPA are defined in table 1 on page 33 of the Directors’ Report. The non-IFRS measures are unaudited, however, they have been derived from the audited financial statements. (2) O n 1 July 2019 the Group adopted AASB 16 – Leases using the full retrospective method of adoption. EBITDA for FY19 and FY20 includes the impact of this new standard. (3) O n 1 July 2018 the Group adopted AASB 15 – Revenue from Contracts with Customers using the full retrospective method of adoption. The revenues for FY18 and onwards include the impact of this new standard. (4) C ompound Annual Growth Rates (CAGR) are shown for the period since FY2018. Meaningful growth rates cannot be provided for metrics that have moved from a negative to a positive amount. 5. Executive Remuneration 5.1 Remuneration Objectives & Strategy RB Group’s vision is to scale the business to be a global leading online marketplace platform and an enduring organisation that creates value for shareholders over the long-term. RB Group operates in four highly competitive global talent markets – Melbourne, San Francisco, New York and Berlin. Attracting and retaining talent in these markets must be supported by a compelling remuneration strategy. The RECM is designed to attract, motivate and retain proven, global executive talent who will successfully execute RB Group’s vision and strategy in a manner that aligns with the company’s values. The RECM recognises compensation needs to be positioned to extract mid-career executives on a strong earnings trajectory from roles in companies that provide them with the experience that RB Group needs. The Board sets key annual Objectives and Key Results (OKRs) for the CEO and tracks performance against these. The CEO sets annual performance OKRs with each executive aligned to the company OKRs. Performance is also measured against the Redbubble Behaviours that are in line with our purpose and values and clearly set our expectations on ways of working. Performance against these objectives, along with total company performance informs annual compensation reviews for all executives. The performance of all executives reporting to the CEO is discussed with the Committee from time to time, as required. The Committee believes that traditional short-term incentives may encourage a focus on short-term performance at the expense of long-term value creation. This is compounded by the difficulty of setting short-term targets in a fast-paced growth environment. Under the RECM, the value of Base Equity and Long Term Incentive components are fundamentally dependent on share price performance, aligning executives with shareholder interests. Furthermore, the Committee has carefully considered a wide range of performance scenarios and outcomes in order to ensure the remuneration outcomes are consistent with its expectations in those circumstances. In the interest of aligning the structure of the RECM with our direct peers located in the US, the current structure is considered robust and best aligned with shareholder value creation whilst attracting and retaining key talent. Executive remuneration levels are reviewed regularly by the Committee with reference to RB Group’s remuneration strategy, company performance, talent competitor market activity and external benchmarks. Link executive performance with RB Group’s financial goals Motivate executives to create sustainable, long-term value for shareholders Align the leadership team by providing consistent goals which encourage a long-term focus Attract & Retain exceptional talent in globally competitive, highly mobile markets Remuneration Report (audited) continued 45 Redbubble – Annual Report 2022 44 Redbubble – Annual Report 2022

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