Positioning for the Future | 33
The Company believes that a framework of remuneration for the Board and key executives should not be taken in
isolation. It should be linked to the building of management bench strength and the development of key executives.
This is to ensure continuous development of talent and renewal of strong and sound leadership for a sustainable
business and a lasting company.
The Board has established the ERCC to oversee executive compensation and development in the Company.
The ERCC sets appropriate remuneration policies and designs competitive compensation packages with a focus on
long term sustainability of business and long term shareholders’ return. The ERCC aims to build capable and committed
management teams, through competitive compensation and progressive policies which are aligned to the long-term
interests and risk policies of the Group, and which can attract, motivate and retain a pool of talented executives to drive
the growth of the Company. The ERCC thus plays a crucial role in helping to ensure that the Company is able to attract,
motivate and retain the best talents to drive the Group’s business forward.
All the ERCC members, including the Chairman of the ERCC, are non-executive independent Directors.
The ERCC is guided by its Terms of Reference. In particular, the ERCC recommends to the Board for approval a
general framework of remuneration for the non-executive Directors and key management personnel of the Group and
recommends to the Board for approval the specimc remuneration package for each key management personnel.
The ERCC also recommends to the Board for endorsement the specimc remuneration package for each Director.
The ERCC conducts, on an annual basis, a succession planning review of the P&GCEO and key management positions
in the Company. Potential candidates for leadership succession are reviewed for their readiness in the immediate,
medium and longer term.
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The principles governing the Company’s key management personnel remuneration policy are as follows
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t Build sustainable value creation and drive wealth-added activities to align with longer term shareholder interests
t Provide sound, structured funding to ensure affordability and cost-effectiveness in line with performance goals
t Enhance retention of key talents to build strong organisational capabilities
Motivate Right Behaviour
t Pay for performance – align, differentiate and balance rewards according to multiple dimensions of performance
t Strengthen line-of-sight linking rewards and performance goals
t Foster Group-wide interests to recognise the interdependence of the various business units and drive superior
outcomes
Fair & Appropriate
t Ensure remuneration is competitive relative to the appropriate external talent markets
t Manage internal equity so that remuneration systems are viewed as fair across the Group
t Signimcant and appropriate portion of pay-at-risk, taking into account risk policies of the Group, symmetrical with
risk outcomes and sensitive to risk time hori[on
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t Maintain rigorous corporate governance requirements
t Exercise appropriate nexibility to meet strategic business needs and practical implementation considerations
t Facilitate employee understanding to maximise the value of the remuneration programmes
Corporate Governance & Transparency
