FGV Annual Report 2018

92 REINFORCED OUR STANDARDS OF GOVERNANCE FGV HOLDINGS BERHAD FIXED REMUNERATION Basic salary Performance Bonus Fixed Allowances and Other Benefits LTIP VARIABLE REMUNERATION TOTAL REMUNERATION 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 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 following remuneration structure has been in effect since 2016. The Nomination and Remuneration Committee decided not to make material changes to the framework for 2018. In general, Senior Management’s Performance Bonus is determined based on Group, Sector, Cluster or Division and individual performances. Individual weightage for these factors vary between employee groups depending on employees’ accountability and line of sight. The Board of Directors is responsible in assessing the individual performance of the GCEO, Company Secretary and Chief Internal Auditor. The performance of other Senior Managements are assessed by the GCEO. Based on the mechanism approved by our Board of Directors in February 2016, 11.67 million shares were granted under a Restricted Share Plan to eligible employees in 2018. The vesting of the shares, expected in three years based on a ratio of 30:30:40, is dependent on the employees’ performance level. TOP 5 SENIOR MANAGEMENT’S REMUNERATION FOR FY2018 The remuneration includes salaries, bonuses, benefits-in-kind and other emoluments. GOVERNANCE AT FGV: REMUNERATION 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 RM1,200,001 to RM1,250,000 Mohd Najid Md Yahya (Resigned as Chief Human Resources Officer on 1 September 2018) RM1,200,001 to RM1,250,000 Palaniappan Swaminathan (Resigned as Chief Operating Officer of Plantation Sector on 1 September 2018) RM1,100,001 to RM1,150,000 Ahmad Tifli Dato’ Haji Mohd Talha (Resigned as GCFO and Chief Operating Officer of Corporate Services Sector on 13 October 2018) RM950,001 to RM1,000,000 Azman Ahmad Chief Operating Officer of Logistics & Support Businesses Sector RM900,001 to RM950,000