FY 2011 Annual Report - Sheng Siong

(B) REMUNERATION MATTERS
Procedures for developing remuneration policies
Sheng Siong Annual Report 2011
Corporate Governance
Principle 7: There should be a formal and transparent procedure for developing policy on executive remuneration
and for fixing the remuneration packages of individual Directors. No Director should be involved in deciding
his own remuneration.
Remuneration Committee
The RC comprises the following non-executive Directors, the majority of whom, including the Chairman, are
independent:
• Mr. Goh Yeow Tin (Chairman)
• Mr. Jong Voon Hoo
• Mr. Lee Teck Leng, Robson
The principal responsibilities of the RC include:
(i) recommending to the Board for endorsement, a framework of remuneration for our Directors and key
Management in respect of all aspects of remuneration, including but not limited to Directors’ fees,
salaries, allowances, bonuses, options and benefits in kind; and
(ii) recommending specific remuneration packages for each of our executive Directors.
In developing the Group’s framework of remuneration, the RC may from time to time refer to market reports or
seek expert advice on average remuneration. No Director is involved in deciding his own remuneration.
The RC also reviews the total remuneration of employees who are related to Directors annually, to ensure that
their remuneration packages are in line with the Group’s staff remuneration guidelines and commensurate with
their respective job scopes and level of responsibilities. Any member of the RC who is related to the employee
under review abstains from such review.
Level and Mix of Remuneration
Principle 8: The level of remuneration should be appropriate to attract, retain and motive the Directors needed
to run the company successfully but companies should avoid paying more than necessary for this purpose.
A significant proportion of executive directors’ remuneration should be structured so as to link rewards to
corporate and individual performance.
Directors’ remuneration
Pursuant to service agreements entered into between the Company and each of Mr. Lim Hock Chee, Mr. Lim
Hock Eng, Mr. Lim Hock Leng and Mr. Tan Ling San (collectively, the “Executive Directors”), the remuneration
packages of the Executive Directors include a variable bonus element, which is based on the Company’s and
individual performance so as to align the interests of the Executive Directors with those of shareholders.
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