A. Fixed Compensation: The fixed compensation comprises the base salary and compulsory employer’s Central Provident Fund (CPF) contributions. B. Variable Cash-based Incentives: The variable cash-based incentives include the Performance Target Bonus (PTB) and EVA-based Incentive Scheme. Performance Target Bonus (PTB) The PTB is a cash-based incentive for Senior Management Executives which is linked to the achievement of annual performance targets that will vary depending on their job requirements. Individual performance objectives are set at the beginning of each financial year. The performance targets are in financial, people, operational, customer and sustainability areas aligned to the business’ strategic goals. These objectives are cascaded down to a select group of key executives creating alignment between the performance of the Group, Company and the individual. The individual PTB payouts for the Group President & CEO and Key Management Executives are determined by the ERCC based on the Group’s, Company’s and individual performance at the end of the financial year. EVA-based Incentive Scheme The EVA-based Incentive Scheme (EBIS), which is linked to the Company’s economic value-add and financial performance, forms part of the short-term incentives for the Senior Management Executives. Under its terms of reference, the ERCC performs the following duties and responsibilities: Executive Remuneration General Framework Reviews and recommends to the Board the Group’s general framework for determining executive remuneration including the remuneration of the Group President & CEO, Key Management Executives and other senior management executives (collectively referred to as “Senior Management Executives”). This includes all aspects of remuneration including termination benefits to ensure that such benefits are fair. Executive Director and Senior Management Executives • Reviews and recommends to the Board the entire specific remuneration package and service contract terms for the Group President & CEO, who is also the executive Director, and Key Management Executives. • Considers, reviews, approves and/ or varies (if necessary) the entire specific remuneration packages and service contract terms for the Senior Management Executives of the Group. For FY2024, the Board reviewed and approved the specific remuneration packages and service contract terms for the Group President & CEO and Key Management Executives. Non-Executive Director Remuneration • Reviews and recommends to the Board the remuneration framework (including Directors’ fees) and specific remuneration for the nonexecutive Directors. Equity-based Plans • Approves the design of equity- based plans and reviews and administers such plans. Executive and Leadership Development • Oversees the development of Management with the aim of a continual build-up of talent and renewal of strong and sound leadership to ensure the continued success of the Group and its businesses. • Approves appointments to Senior Management Executive positions within the Group. For FY2024, Aon was engaged as remuneration consultant (Remuneration Consultant) to provide professional advice on Board and executive remuneration matters. Aon and its principal consultant are independent and are not related to the Group or any of its Directors. Executive Remuneration Structure Remuneration for the Senior Management Executives comprises a fixed compensation, variable cash-based incentives, share-based incentives and market-related benefits. The remuneration mix is intended to attract, retain and motivate Senior Management Executives to manage the Company for the long term and to align their interests with that of shareholders and other stakeholders. ERCC MET IN 2024 3 TIMES 87 CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT
RkJQdWJsaXNoZXIy ODIwNTc=