Press Release

Further information regarding proposed remuneration arrangements

Sydney, 11 December 2009

Macquarie Group (ASX:MQG; ADR:MQBKY) advises that under proposed changes to its remuneration arrangements announced in October, approximately $350 million of the retained profit share of its senior staff will be applied to the acquisition of fully paid ordinary MQG shares. The shares will be acquired as the initial allocation under the Macquarie Group Employee Retained Equity Plan (MEREP), a proposed new employee equity plan.

The proposed remuneration changes, including the new employee equity plan, have been detailed in the Notice of Meeting and Explanatory Memorandum dated 16 November 2009 and will be voted on at a General Meeting of Macquarie shareholders on 17 December 2009.

The $350 million estimate includes a portion of staff members' retained 2009 profit share, and amounts of Executive Directors' retained profit share from prior years which they elected to move from the existing to the new arrangements. Macquarie previously advised that because participation in MEREP for Executive Directors' pre-2009 retained amounts was not mandatory, this amount would be less than the $500 million estimate advised in March.

The Managing Director has elected to transition his entire pre-2009 retained profit share to the new arrangements.

As previously announced, the equity participation is proposed to be provided via either the 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.

 

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