Level and Mix of Remuneration
Principle 8: The level and structure of remuneration should be aligned with the long-
term interest and risk policies of the company, and should be appropriate
to attract, retain and motivate (a) the directors to provide good stewardship
of the company, and (b) key management personnel to successfully
manage the company. However, companies should avoid paying more
than is neccessary for this purpose.
The Group’s remuneration policy is to provide remuneration packages which will reward
performance and attract, retain and motivate directors and key management personnel to run
the Group successfully. In setting the remuneration packages, the RC takes into consideration
the remuneration and employment conditions within the same industry and in comparable
companies, and takes into account the Group’s and the individual’s performance.
The executive directors do not receive directors’ fees. The remuneration for the executive
directors and the key management personnel comprises primarily a basic salary component
and a variable component which is the annual bonus, based on the performance of the Group
as a whole and their individual performance. The service agreements entered into with the
four executive directors, namely, Mr Ang Kok Tian, Mr Ang Ah Nui, Mr Ang Kok Eng and Mr
Ang Kok Leong, are automatically renewable on a yearly basis unless terminated by either
party giving written notice of not less than three months.
The independent directors receive directors’ fees, in accordance with their contributions,
taking into account factors such as responsibilities, effort and time spent for serving on the
Board and Board Committees. The independent directors’ fees were derived using the fee
structure as follows:
Audit
Committee
Nominating
Committee
Remuneration
Committee
Chairman
$34,800 per annum $24,400 per annum $24,400 per annum
Member
$23,200 per annum $18,600 per annum
$18,600 per annum
The Lead Independent Director also gets an additional $10,000 to undertake this position.
The Company does not have service contracts with independent directors. Directors’ fees are
recommended by the Board and are subject to the approval of shareholders at the Company’s
AGM.
The Company encourages independent directors to invest in the Company and has taken steps
in the past to ensure that this happened. The shareholdings of the individual directors of the
Company are set out on page 59 of this Annual Report. None of the directors hold shares in
the subsidiaries of the Company.
CORPORATE GOVERNANCE
REPORT
ASL Marine Holdings Ltd. /Annual Report 2015
36
