KEY MANAGEMENT REMUNERATION The Group’s Compensation Policy (GC Policy) governs the remuneration framework for all employees, including Key Management, with a focus on performance metrics that extend beyond short-term financial considerations. The NRC rigorously reviews the Key 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 Key Management’s remuneration, both fixed and variable components are considered. The Group Human Capital (GHC) is responsible for evaluating and aligning the remuneration, particularly the performance-based elements, with individual contributions to the Group. Benchmarking against industry standards is a critical aspect of maintaining competitiveness. GHC, upholding high standards of professionalism, oversees the governance of the remuneration strategy. It provides a comprehensive overview of compensation proposals to the NRC, covering aspects such as 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. Corporate Governance Overview Statement PRINCIPLE A Total Remuneration Variable Remuneration Performance bonus Fixed Remuneration Basic salary Fixed allowances and other benefits The Board of Directors evaluated the performance of key positions, including the GCEO, Senior Vice Presidents and above, and GMC members. The GCEO also oversees the performance assessment of the GMC members. Key Management’s performance bonus is directly linked to their individual contributions to FGV’s overall business performance. For 2024, GMC has KPIs related to sustainability and the environment, aligned with the FGV Sustainability Framework enhancement, which covers economic growth, governance, social aspects, environment, and innovation & technology. FGV has fully implemented the Balanced Scorecard and will realign its KPIs with its core principles, which encompass four key perspectives: Finance, Customer/Stakeholders, Operational Excellence, and Organisational Capabilities. These perspectives are taken into account in Key Management’s KPIs. In 2024, the position of GCEO was held by the following individuals:- 1. Dato’ Mohd Nazrul Izam Mansor from 1 January 2024 to 31 August 2024. 2. En. Fakhrunniam Othman effective 1 November 2024. The details of the remuneration of the GCEOs and the names of the top five (5) Key Management are disclosed in the CG Report. Further information on the Group Compensation Policy for Senior Management’s remuneration is available at www.fgvholdings.com. 208 FGV Holdings Berhad | Annual Integrated Report 2024
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