Frontken Berhad Annual Report 2017

27 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2017 Corporate Governance Overview Statement (cont’d) PRINCIPLE A – BOARD LEADERSHIP AND EFFECTIVENESS (cont’d) III. Remuneration (cont’d) The Board has adopted the said policies as deliberated by the Remuneration Committee, with the Director interested abstaining from discussion, to determine the remuneration of Directors and Senior Management to align with business strategy and long-term objectives of the Company. The Executive Directors and Senior Management are paid salaries, allowance, performance-based incentive including bonus and other customary benefits as appropriate. The remuneration is set based on relevant market relativities, performance, qualifications, experience and geographic location where the personnel is based. The salary level for Executive Directors and Senior Management takes into account the nature of the role, performance of the business and the individual and market positioning. The remuneration of Independent Directors comprises fees, meeting allowances and other benefits. The Board ensures that the remuneration for Independent Non-Executive Directors do not conflict with their obligation to bring objectivity and independent judgement on matters discussed at Board meetings. The respective Directors are required to abstain from deliberation and voting on their own remuneration at Board Meetings. Pursuant to the Listing Requirements of Bursa Securities, the remuneration received by Directors of the Company, on a named basis, from the Group and Company for the financial year ended 31 December 2017 is disclosed as follows: Group Name of Director Salaries RM Fees RM Bonus RM Benefits -in-kind RM Others RM Subsidiaries Ng Wai Pin 1,900,740 19,496 583,958 - 11,312 Dr Tay Kiang Meng 1,168,968 - 459,008 - 58,774 Dato’ Haji Johar bin Murat @ Murad - - - - - Aaron Sim Kwee Lein - - - - - Dr Jorg Helmut Holnloser - - - - - Sub-total 3,069,708 19,496 1,042,966 - 70,086 Company Ng Wai Pin 72,768 75,600 2,060,364 - 413,352 Dr Tay Kiang Meng - 39,600 - - - Dato’ Haji Johar bin Murat @ Murad - 50,400 - - - Aaron Sim Kwee Lein - 58,200 - - - Dr Jorg Helmut Holnloser - 46,200 - - - Sub-total 72,768 270,000 2,060,364 - 413,352 Grand total 3,142,476 289,496 3,103,330 - 483,438 Note: The remuneration paid to the Executive Directors were in respect of their employment with the Company/Group. Included in the bonus component of the remuneration of Mr Ng Wai Pin received from the Group and Company is an amount in respect of his bonus for the financial year ended 31 December 2016 which was only accrued in the financial statements of the Group and Company for the financial year ended 31 December 2017. The Remuneration Committee and the Board are of the view that disclosing the top 5 key Senior Management’s remuneration on a named basis in bands of RM50,000 according to salaries, bonuses, benefits-in-kind and other emoluments would be disadvantageous to the Group’s business interest, given the highly competitive conditions in the industry the Group operates where poaching of executives is commonplace. As an Alternative, the Remuneration Committee and the Board believe that the disclosure of Senior Management’s remuneration, that includes the top 5 key Senior Management, in the audited financial statements are adequate as it complies with the requirements of Paragraph 17 of MFRS 124 “Related Party Disclosures”. It is the Group’s practice to hire the best talents from the geographical regions that the Group operates in. Accordingly, the compensation and benefits packages for Group’s Senior Management are structured competitively to attract, motivate and retain talents.