Shaped By High Standards Of Governance 144 FGV HOLDINGS BERHAD SENIOR MANAGEMENT’S REMUNERATION The remuneration framework for all employees inclusive of the Senior Management is guided by the Group’s Compensation Policy (GC Policy) and takes into account performance beyond shortterm financial measures. The NRC reviews Senior Management’s remuneration framework taking into consideration the best practices, views of industry experts, obtaining and analysing the available data, stakeholders and the market at large. The NRC also reviews the remuneration packages for the Senior Management as per the prevailing Group LOA and ensures the remuneration level is sufficient to attract, retain and motivate high calibre individuals with the required qualification, skills, talent and experience to achieve sustained market leadership. The Senior Management’s remuneration structure consists of fixed and variable remunerations. Group Human Capital (GHC) was tasked to review and link the remuneration of the Senior Management, especially performance-based remuneration, to the individual’s performance and contribution to the Group and also benchmarked against the industry to ensure alignment and pay competitiveness. GHC presents high standards of professionalism, serves to regulate the governance of remuneration strategy that emphasises on the broader look on compensation proposals to the NRC, which includes annual salary increments, performance bonuses, promotions, salary adjustments, promotion adjustments, other benefits and benefits-in-kind. Fixed Remuneration Variable Remuneration Total Remuneration Basic salary Fixed Allowances and Other Benefits Performance Bonus Board Leadership and Effectiveness Principle A: The Board of Directors is responsible for assessing the performance of the Group CEO, Company Secretary, Chief Internal Auditor and Head Group Governance & Risk Management while the rest of the Senior Management’s performance is assessed by the Group CEO. The Senior Management’s performance bonus is linked to their individual’s contribution towards FGV’s business performance. For 2022, the Senior Management that had Key Performance Indicators (KPIs) related to sustainability and environment are Group CEO, Head of Consumer Products, Head of Integrated Farming, Group Human Capital Officer, Head of Group Sustainability and Group Divisional Directors. As such, the Company’s material sustainability risks and opportunities have been addressed accordingly during the 2022 performance review of these Senior Management. 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 2022 (in the bands of RM50,000) include Dato’ Mohd Nazrul Izam Mansor (Group CEO), Dato’ Mohd Hairul Abdul Hamid (Group CFO), Mohd Sarian Md Sahid (Group Divisional Director, Plantation Sector), Azman Ahmad (Group Divisional Director, Logistics & Others Sector) and Syed Feizal Syed Mohammad (Group CEO, MSM Malaysia Holdings Berhad). The remuneration includes salaries, bonuses, benefits-in-kind and other emoluments. A summary of the Group Compensation Policy on Senior Management’s remuneration can be found on our website, www.fgvholdings.com.
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