FGV Annual Report 2020

222 FGV HOLDINGS BERHAD Annual Integrated Report 2020 Governance at FGV: Remuneration Top five (5) Senior Management’s Remuneration for FY2020 FIXED REMUNERATION Fixed Allowances and Other Benefits Basic Salary VARIABLE REMUNERATION Performance Bonus Long Term Incentive Plan (LTIP) TOTAL REMUNERATION The Nomination and Remuneration Committee reviews the remuneration framework for Senior Management annually. The Nomination and Remuneration Committee takes into consideration FGV’s performance to ensure the sustainability of the remuneration package in the long run. FGV’s remuneration structure, which consists of fixed and variable remunerations are benchmarked against the industry to ensure alignment and pay competitiveness. The Board of Directors is responsible for assessing the performance of the GCEO, Company Secretary and Chief Internal Auditor. The performance of other Senior Management is assessed by the GCEO. In general, the Senior Management’s Performance Bonus is determined based on Group, Sector, Division and individual performances. The relative weighting (%) of the business and individual performances has been determined based upon an employee’s position within the Company (line-of-sight), to directly impact and be held accountable for, his or her achievements and the Company’s overall performance. LTIP, which is based on the mechanism approved by our Board of Directors in February 2016, and the vesting of the shares, in three years based on a ratio of 30:30:40, is dependent on the employees’ performance level. A total of 2,901,400 shares were vested to eligible employees in 2020. In support of financial initiatives and response to the COVID-19 pandemic, the Senior Management agreed to a 20% reduction of Senior Management’s car allowance from July to December 2020 and 6.67% reduction of Senior Management’s basic salary due to two days unpaid leave per month from July to December 2020. Senior Management’s Remuneration Policy Dato’ Haris Fadzilah Hassan Group Chief Executive Officer RM1,750,001 to RM1,800,000 Dato’ Mohd Hairul Abdul Hamid Group Chief Financial Officer RM1,400,001 to RM1,450,000 Syed Mahdhar Syed Hussain Group Divisional Director of Plantation Sector RM1,050,001 to RM1,100,000 Azman Ahmad Group Divisional Director of Logistics & Support Businesses Sector RM950,001 to RM1,000,000 Dato’ Khairil Anuar Aziz Group Chief Executive Officer, MSM Malaysia Holdings Berhad (Ceased office with effect from 5 October 2020) RM850,001 to RM900,000