FGV Annual Integrated Report 2019

112 FGV HOLDINGS BERHAD SENIOR MANAGEMENT’S REMUNERATION POLICY 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. FIXED REMUNERATION Basic Salary Fixed Allowances and Other Benefits VARIABLE REMUNERATION Performance Bonus Long Term Incentive Plan (LTIP) TOTAL REMUNERATION The following remuneration structure has been in effect since 2016. The Nomination and Remuneration Committee decided not to make material changes to the framework for 2019. The Board of Directors is responsible for assessing the individual performance of the GCEO, Company Secretary and Chief Internal Auditor. The performance of other members of Senior Management is assessed by the GCEO. In general, Senior Management’s Performance Bonus is determined based on Group, Sector, Cluster or Division and individual performances. Individual weightage for these factors varies between employee groups depending on employees’ accountability and line of sight. Due to poor financial results for 2018, Management decided not to propose Performance Bonus to employees. LTIP, which is based on the mechanism approved by our Board of Directors in February 2016, and the vesting of the shares, expected in three years based on a ratio of 30:30:40, is dependent on the employees’ performance level. A total of 2.39 million shares were vested under a Restricted Share Plan to eligible employees in 2019. However, due to the poor financial results for 2018, Management decided not to grant LTIP to employees. The Board of Directors also reviewed FGV Senior Management officers whose Fixed-Term Employment Contracts were due for renewal and/or promotion in 2019. HOW WE ARE GOVERNED GOVERNANCE AT FGV: REMUNERATION TOP 5 SENIOR MANAGEMENT’S REMUNERATION FOR FY2019 Name of Senior Management Range of Remuneration Per Annum Dato’ Haris Fadzilah Hassan (Appointed as GCEO starting from 23 January 2019) RM1,550,001 to RM1,600,000 Dato’ Mohd Hairul Abdul Hamid Group Chief Financial Officer RM1,200,001 to RM1,250,000 Syed Mahdhar Syed Hussain Chief Operating Officer, Plantation Sector RM950,001 to RM1,000,000 Dato’ Khairil Anuar Aziz Group Chief Executive Officer, MSM Malaysia Holdings Berhad RM950,001 to RM1,000,000 Azman Ahmad Chief Operating Officer, Logistics & Others Sector RM850,001 to RM900,000 The remuneration includes salaries, bonuses, benefits-in-kind and other emoluments.