CapitaLand Limited - Annual Report 2015 - page 31

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CapitaLand Limited
Annual Report 2015
Overview Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
Financials &
Additional
Information
Disclosure on Remuneration
Principle 9:
Every company should provide clear disclosure of its remuneration policies, level and mix of remuneration,
and the procedure for setting remuneration, in the company’s Annual Report. It should provide disclosure in
relation to its remuneration policies to enable investors to understand the link between remuneration paid to
directors and key management personnel, and performance.
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 also 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 specific remuneration package for each key management personnel. The ERCC also recommends
to the Board for endorsement the specific remuneration package for each Director.
The ERCC conducts, on an annual basis, the evaluation of the P&GCEO’s performance and a succession planning review
of the P&GCEO and key management positions in the Group and presents its findings and recommendations to the Board.
Potential candidates for leadership succession are reviewed for their readiness in the immediate, medium and longer term.
Remuneration policy for key management personnel
The principles governing the Company’s key management personnel remuneration policy are as follows:
Business Alignment
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Motivate Right Behaviour
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Fair & Appropriate
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risk outcomes and sensitive to the risk time horizon
Effective Implementation
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