STEERING INTEGRITY AND ACCOUNTABILITY SEC 6 126 SENIOR MANAGEMENT’S REMUNERATION The Group’s Compensation Policy (GC Policy) governs the remuneration framework for all employees, including the Senior Management, with a focus on performance metrics beyond short-term financial considerations. The NRC rigorously reviews the Senior Management’s remuneration structure, incorporating best practices, insights from industry experts, data analysis, stakeholder perspectives, and market dynamics. This ensures that the remuneration is competitive enough to attract, retain, and motivate individuals with the requisite skills and experience for sustained market leadership. Within the Senior Management’s remuneration, fixed and variable components are considered. The Group Human Capital (GHC) is tasked with evaluating and aligning the remuneration, particularly the performance-based elements, with individual contributions to the Group. Benchmarking against industry standards is a critical aspect to maintain competitiveness. GHC, known for its high standards of professionalism, oversees the governance of the remuneration strategy. It presents a comprehensive view of compensation proposals to the NRC, covering elements like annual salary increments, performance bonuses, promotions, salary adjustments, other benefits, and benefits-in-kind. This approach ensures that the remuneration strategy not only meets the Group’s objectives but also aligns with industry benchmarks. The Board of Directors holds the responsibility for evaluating the performance of key positions, including the GCEO, Senior Vice President and above as well as GMC members. Conversely, the assessment of the remaining Senior Management members’ performance is overseen by the GCEO.The Senior Management’s performance bonus is directly linked to their individual contributions that enhance FGV’s overall business performance. For 2023, the Senior Management that has KPIs related to sustainability and environment are the GCEO, Group Director Plantation Division, Group Divisional Director Logistics & Support Division, Group Chief Strategy Officer, Group Chief Sustainability Officer and Head of Integrated Farming. Moving forward, FGV will undertake the realignment of the Scorecard and KPIs with the principles of Balanced Scorecard, which include Finance, Customer/Stakeholders, Operational Excellence and Organisational Capabilities. These will all be considered for Senior Management’s KPIs. The top five Senior Management’s remuneration for 2023 (in the bands of RM50,000) include Dato’ Mohd Nazrul Izam Mansor (GCEO), Dato’ Mohd Hairul Abdul Hamid (GCFO), Syed Feizal Syed Mohammad (GCEO, MSM), Salman Ghazali (Group Chief Strategy Officer) and Fakhrunniam Othman (Group Director, Logistics & Support Division). The remuneration includes salaries, bonuses, benefits-in-kind and other emoluments. Basic salary Fixed Allowances and Other Benefits Fixed Remuneration Variable Remuneration Performance Bonus Total Remuneration PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS
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