ANNUAL REPORT 2015
23
Corporate Governance
Report
Remuneration Policies
In order to maximise shareholders’ value and promote the long-term success of the Group, the Company seeks to attract, retain and motivate
management and employees by offering competitive remuneration packages. The remuneration of our management and employees is set based
on,
inter alia
, each individual’s scope of responsibilities, prevailing market conditions, and comparable industry benchmarks. The Company
rewards management and employees based on achievement of individual performance objectives using indicators such as competencies, key
result areas, performance ratings and the Group’s financial performance. The Board is of the view that performance-based remuneration will
motivate our management and employees to achieve superior performance and promote the long-term growth of the Group.
Under the terms of the service agreements entered into with our Executive Directors, the Company is entitled to reclaim, in full or in part, any
incentive bonus paid to the Executive Director, under circumstances of (i) misstatement of financial results, or (ii) misconduct of the Executive
Director, resulting, directly or indirectly, in financial loss to the Company, as may be determined by the Board in its absolute discretion.
Executive Directors’ and Key Management’s Remuneration
Each of our Executive Directors and key management personnel is entitled to,
inter alia
, a base salary and performance-related incentives
linked to the financial performance of the Group and the individual’s performance, which is assessed based on their respective key performance
indicators allocated to them.
Under the terms of their service agreements, each of our Executive Directors is entitled to an incentive bonus based on,
inter alia
, the financial
performance of the Group and his individual performance for that year. The terms of our Executive Directors’ service agreements and their
remuneration packages are subject to review by the RC. There are no excessive or onerous removal clauses in these service agreements.
The following performance conditions have been selected to motivate our Executive Directors and key management personnel to work in
alignment with the interests of all stakeholders:
Performance Conditions
Performance Criteria
Qualitative
(a)
Leadership
(b)
People development
(c)
Commitment
(d)
Teamwork
(e)
Current market and industry practices
Quantitative
(a)
Profit before tax
(b)
Relative financial performance of the Group to its industry
competitors
Our Executive Directors and key management personnel have met their respective key performance indicators in respect of FY2015, which were
based on the Group’s profits and IPO milestones prior to the listing of the Company on the Catalist of the SGX-ST on 9 November 2015.
Independent Directors’ Remuneration
The Independent Directors have not entered into service agreements with the Company. Each Independent Director receives a basic fee and
additional fees for serving on a committee. The fees are determined by the Board, taking into account the effort, time spent and responsibilities of
the Director, and subject to approval of the shareholders at each AGM of the Company.
