2012 Annual Report - Media Prima Berhad

B. DIRECTORS’ REMUNERATION
Level and Make-up of Remuneration
The Group has established a formal and transparent
procedure for developing policy on executive
remuneration and for fixing the remuneration package
of the individual director. The objective of the Group’s
policy on directors’ remuneration is to attract and
retain directors of the calibre needed to play effective
oversight role in the successful management of
the Group.
The Remuneration Committee (RC), comprising of
wholly Non-Executive Directors, carries out the annual
review of the overall remuneration policy for Executive
Directors whereupon recommendations are submitted
to the Board for approval. The remuneration for
Executive Directors is structured to link rewards to
corporate and individual performance. It is
nevertheless, the ultimate responsibility of the Board
to approve the remuneration of these directors.
An annual review by the RC records the performance
of the GMD and Executive Directors and submits
recommendations to the Board on specific adjustments
in remuneration and/or reward payments that reflect
their respective contributions for the year, and which
are competitive and in tandem with Media Prima’s
corporate objectives, culture and strategy.
The determination of the remuneration packages of
Non-Executive Directors (whether in addition to or in
lieu of their fees as directors), is a matter for the
Board as a whole subject to approval of shareholders
at the AGM. Each individual director abstains from
the Board’s decision on his own remuneration.
Remuneration Package
The remuneration package of the Executive Directors
is as follows:
i. Basic Salary
Remuneration Committee recommends the basic
salary (inclusive of statutory employer
contributions to the Employee Provident Fund)
for the Executive Director, taking into account
the performance of the individual, the inflation
price index and information from independent
sources on the rates of salary for similar positions
in a selected group of comparable companies.
ii.
iii.
iv.
TELEVISION
NETWORKS
RADIO OUTDOOR
NETWORKS
Performance Bonus
The Group operates a performance based bonus
scheme for all employees, including the Executive
Directors. The criteria for the scheme is
dependent on the achievement of KPI set for the
Group’s business activities as measured against
targets, together with an assessment of each
individual’s performance during the period.
Bonuses payable to the Executive Directors are
reviewed by the Remuneration Committee and
approved by the Board.
Fixed Allowance
Executive Directors are entitled for fixed
allowances.
Employees’ Share Option Scheme (ESOS)
Executive Directors are also eligible to participate
in the employees’ share option scheme designed
to incentivise employees of the Group.
v. Benefits-in-kind
Executive Directors are entitled to other
customary benefits such as Group Hospitalisation
and Surgical Insurance, leave passage, car and
driver.
Non-Executive Directors are paid annual fees,
attendance allowance for each Board meeting
attended. They are also entitled for Group
Hospitalisation and Surgical Insurance. The Chairman
is entitled to leave passage, contributions to Employee
Provident Fund, a car and driver benefits.
Directors of Media Prima are also covered under a
Directors and Officers Liability Insurance Policy against
any liability incurred by them in discharging their
duties while holding office as directors of the Group.
The directors contribute partially toward the payment
of the insurance premium.
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2012
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