# UCITS V Remuneration Policy (unaudited)
### Legg Mason Investments (Ireland) Limited Remuneration Policy
- Executive Summary
	- Legg Mason Investments (Ireland) Limited (“LMI(I)L”) is authorised in Ireland as a UCITS Management Company (“UCITS ManCo”) and Alternative Investment Fund Manager (“AIFM”) for its Irish domiciled UCITS and Alternative Investment Funds (“AIFs”), (collectively the “Funds”).
	- LMI(I)L delegates portfolio management of its Funds to affiliated investment managers (collectively the “Affiliates”).
	- This Remuneration Policy (the “Policy”) will assist LMI(I)L in complying with the following applicable remuneration requirements:
		- Alternative Investments Fund Managers Directive (“AIFMD”);
		- Undertakings for Collective Investment in Transferrable Securities (“UCITS”);
		- ESMA’s Guidelines on Sound Remuneration Policies under the AIFMD (together, the “Remuneration Requirements”).

	- This Policy aims to be consistent with, and promote, sound and effective risk management and not to encourage risk-taking which is inconsistent with the risk profiles of LMI(I)L and the Funds it manages.

- 
### Executive Summary
	- Unless otherwise defined herein, all capitalised terms shall bear the same meaning as capitalised terms used in the Remuneration Requirements and in the business plan maintained by LMI(I)L.

- 
### Delegates
	- LMI(I)L has put in place contractual arrangements with Affiliates to ensure the Remuneration Requirements are applied proportionately and not circumvented.

- 
### Application
	- LMI(I)L’s criteria for determining Identified Staff is:
		- Senior management. These employees have significant influence over LMI(I)L and its risk profile. For example, holders of Pre-Approved Controlled Functions, corporate and functional directors.
		- Staff who are identified as material risk takers. These employees, through their professional activities, have the ability to impact the risk profile of LMI(I)L.
		- An employee may also be Identified Staff if their remuneration is equivalent to that of senior management and their professional activities have a material impact on LMI(I)L’s risk profile. Currently, no employees fall into this category.

	- A list of Identified Staff is maintained. Identified Staff will be contacted annually by HR to inform them that they are subject to the Remuneration Requirements.
	- The Board of Directors of LMI(I)L (the “Board”), with assistance from Human Resources (“HR”), shall approve the Identified Staff list not less than annually.
	- HR will inform employees if they have been assessed as Identified Staff and the Remuneration Requirements they are subject to.
	- The Board has three Irish resident independent directors (the “Independent Directors”). This Policy does not apply to the Independent Directors as each receive a fixed annual fee for their services.

- 
### Remuneration
	- Remuneration will consist of all forms of payment or benefits made directly by LMI(I)L, or indirectly, but on behalf of LMI(I)L, for professional services provided by LMI(I)L. The two types of remuneration are:
		- Fixed remuneration (payments or benefits made without reference to performance criteria i.e. contractual salary payment); and
		- Variable remuneration (additional payments or benefits made with consideration to performance criteria, or, in very limited circumstances, contractual criteria i.e. cash bonus).
		- Together, “Total Remuneration”.



Fixed Remuneration
- The budget for total remuneration is determined by the Global Remuneration Committee at the end of the fiscal year, and will consider factors such as:
	- Legg Mason Inc’s overall performance;
	- Group total compensation to revenue ratio;
	- Group operating margin; and
	- Market data on competitive fixed and total compensation.


Variable Remuneration
- LMI(I)L does not guarantee variable remuneration to any employees. However, as part of the hiring process, LMI(I)L may offer an initial guaranteed payment if it is required to secure a new hire. This will not exceed the first year of service and the employment contract will document the conditions on which such payment is contingent.
- Where Total Remuneration is >USD100,000, the employee will receive a minimum of 5% of their variable remuneration in restricted Legg Mason stock, which vest in 25% increments per annum over 4 years. The amount of equity as a percentage increases as Total Remuneration increases, up to a maximum of 40%.

UCITS V Remuneration Policy (unaudited) – (continued)

### 5.	Remuneration (continued)
- For Legg Mason shares to vest, the employee must:
	- be employed at the date of vesting; and
	- must not have served (or have been served) notice of termination.


Proportionality
- LMI(I)L has adopted a proportionate approach to the Remuneration Requirements.
- The requirements in relation to the pay-out process and remuneration committees have been disapplied due to the size, internal organisation and the nature, scope and complexity of LMI(I)L’s business.
- 
### Review
- LMI(I)L ensures that remuneration and salary reviews do not encourage employees to take unnecessary risks or act in a manner that would conflict with the client or Fund’s best interest.
- UCITS Mancos and AIFMs that are significant in terms of their size or of the size of the funds they manage, their internal organisation and the nature, the scope and the complexity of their activities are required to establish a remuneration committee. In view of the limited size of the Funds, the non-complex nature of the LMI(I)L’ internal structure and its activities, it is not considered appropriate for LMI(I)L to establish a remuneration committee.
- HR initiate and manage the annual review of adherence to the Remuneration Requirements.

Total remuneration paid to the Directors of Legg Mason Global Solutions plc (the Company”) during the financial year ended 30 June 2020 was as follows:
Type of remuneration
| Fixed remuneration Variable remuneration | $ 48,000 – |
| --- | --- |
| Total remuneration | $ 48,000 |
| Number of Beneficiaries | 3 |

The Company has not paid remuneration to staff of any delegate to whom investment management functions have been delegated by the UCITS. Instead, the UCITS pays a management fee to the relevant delegate as referred to in Note 5 to these financial statements.
LEGG MASON
GLOBAL ASSET MANAGEMENT

Translation (ENIT, 2020-06-30):
# Politica di remunerazione conforme alla Direttiva OICVM V (non sottoposta a revisione) – (continua)
#### 5.	Remunerazione (continua)
- Affinché le azioni Legg Mason possano maturare, il dipendente deve:
	- essere impiegato alla data di maturazione; e
	- non deve aver notificato (o essere stato notificato) la risoluzione.



##### Proporzionalità
- LMI(I)L ha adottato un approccio proporzionato ai Requisiti di remunerazione.
- I requisiti relativi al processo di pagamento e ai comitati di remunerazione sono stati disapplicati a causa delle dimensioni, dell’organizzazione interna e della natura, dell’ambito e della complessità dell’attività di LMI(I)L.
- 
#### Revisione
- LMI(I)L garantisce che le revisioni di remunerazione e stipendio non incoraggino i dipendenti ad assumersi rischi non necessari o ad agire in modo da entrare in conflitto con il cliente o il migliore interesse del Fondo.
- Mancos OICVM e AIFM che sono significativi in termini di dimensioni o dimensioni dei fondi che gestiscono, della loro organizzazione interna e della natura, dell’ambito e della complessità delle loro attività sono tenuti a istituire un comitato per la remunerazione. In considerazione delle dimensioni limitate dei Comparti, della natura non complessa della struttura interna di LMI(I)L e delle sue attività, non è considerato appropriato per LMI(I)L istituire un comitato per la remunerazione.
- Le Risorse umane avviano e gestiscono la revisione annuale dell’aderenza ai Requisiti di remunerazione.

La remunerazione totale corrisposta agli Amministratori di Legg Mason Global Solutions plc (la Società) durante l’esercizio chiuso al 30 giugno 2020 è stata la seguente:
Tipo di remunerazione
| Remunerazione fissa Remunerazione variabile | $48.000 – |
| --- | --- |
| Totale remunerazione | $48.000 |
| Numero di beneficiari | 3 |

La Società non ha pagato alcun compenso al personale di alcun delegato a cui le funzioni di gestione degli investimenti sono state delegate dall’OICVM. L’OICVM paga invece una commissione di gestione al delegato interessato come indicato nella Nota 5 del presente bilancio.