FGV Annual Report 2017

FELDA GLOBAL VENTURES HOLDINGS BERHAD HOW WE ARE GOVERNED 98 SENIOR MANAGEMENT’S REMUNERATION POLICY The Nomination and Remuneration Committee reviews annually the remuneration framework for Senior Management. The Nomination and Remuneration Committee takes into consideration the Company’s performance to ensure the sustainability of the remuneration 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 following remuneration structure has been in effect since 2016. The Nomination and Remuneration Committee decided not to make material changes to the framework for 2017. In line with ongoing cost optimization exercise, selected benefits were reduced on temporary basis since late 2017. In general, Senior Management’s Performance Bonus is determined based on Group, Sector / Cluster / Division and individual performances. Individual weightage for these three factors vary between employee groups depending on employee’s accountability and line of sight. Board of Directors is responsible in assessing the individual performance of GP/CEO, Company Secretary and Chief Internal Auditor. The performance of other Senior Management is assessed by the GP/CEO. The first Long Term Incentive Plan (LTIP) was granted in 2016 with 30% vested in March, 2017. The remaining 70% shares shall be vested in March, 2018 and 2019. The second LTIP was granted and vested in 2017. Moving forward, LTIP shall be granted and vested in the same manner as Performance Bonus aforementioned. TOP 5 SENIOR MANAGEMENT’S REMUNERATION FOR FYE 2017 Name of Senior Management Range of Remuneration Per Annum Dato’ Khairil Anuar Aziz Chief Operating Officer of Sugar Sector and Executive Director of MSM Malaysia Holdings Berhad RM1,100,001-RM1,150,000 Ahmad Tifli Dato’ Haji Mohd Talha Group Chief Financial Officer and Chief Operating Officer of Corporate Services Sector RM900,001 to RM950,000 Mohd Najid Md Yahya Chief Human Resources Officer RM850,001 to RM900,000 Palaniappan Swaminathan Chief Operating Officer of Plantation Sector RM800,001 to RM850,000 Azman Ahmad Chief Operating Officer of Logistics & Support Business Sector RM800,001 to RM850,000 The remuneration includes salaries, bonuses, benefits-in-kind and other emoluments. GOVERNANCE AT FGV: REMUNERATION FIXED REMUNERATION VARIABLE REMUNERATION TOTAL REMUNERATION BASIC SALARY PERFORMANCE BONUS FIXED ALLOWANCES AND OTHER BENEFITS LONG TERM INCENTIVE PLAN