ST Engineering Sustainability Report 2020

CORPORATE OVERVI EW PERFORMANCE REVI EW SUSTAINABI L ITY CORPORATE GOVERNANCE F INANCIAL REPORT Independent and Non-Executive Directors Kwa Chong Seng (Chairman) Lim Chin Hu Lim Sim Seng ERCC met 4 times in 2020 The Executive Resource and Compensation Committee (ERCC) performs the role of the remuneration committee. The members of the ERCC have held senior positions in large organisations and are experienced in the area of executive remuneration policies and trends. All ERCC members are non-executive independent directors. All decisions at any meeting of the ERCC are decided by a majority of votes of the ERCC members present and voting (the decision of the ERCC shall at all times exclude the vote, approval or recommendation of any member who has a conflict of interest in the subject matter under consideration). 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, top five key management executives of the Group and other senior management executives (collectively referred to as “Senior Management Executives”). 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. • 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 FY2020, the Board reviewed and approved the specific remuneration packages and service contract terms for the key management executives. Non-Executive Director Remuneration • Reviews and recommends to the Board the remuneration framework (including directors’ fees) for non-executive 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 financial year 2020, Aon Solutions Singapore Pte. Ltd. (previously known as Aon Hewitt Singapore Pte. Ltd.)(Aon) was engaged as remuneration consultant (Remuneration Consultant) to provide professional 11 1 ANNUAL REPORT 2 02 0 / new technologies that will enhance the core businesses of the Group. REMUNERATION MATTERS Procedures for Developing Remuneration Policies (Principle 6) Level and Mix of Remuneration (Principle 7) Disclosure on Remuneration (Principle 8) Executive Resource and Compensation Committee RD&T met 2 times in 2020