Bank Islam Integrated Annual Report 2020

Components of Remuneration Remuneration Component Approach Base Salary Basic wage paid to an employee as guarantee for service/work rendered to the company Fixed Allowance(s) Guaranteed cash paid under various classifications to compensate for miscellaneous job-related expenses Benefits ÇɁȶӸʥƃǼlj ɨljȴʍȶljɨƃɽȈɁȶ ɥɨɁʤȈǁljǁ Ȉȶ ƃǁǁȈɽȈɁȶ ɽɁ Ɂɽȃljɨ ƺƃɰȃ ƺɁȴɥljȶɰƃɽȈɁȶ Variable Pay ȶȶʍƃȢ ȶɁȶӸǼʍƃɨƃȶɽljljǁӗ ɥljɨǹɁɨȴƃȶƺljӸƹƃɰljǁ ƺƃɰȃ ɥƃʰȴljȶɽɰӣƹɁȶʍɰ ƃȶǁ ɥɨɁǹȈɽ ɰȃƃɨȈȶǼ awards Long-Term Incentive Ąljʥƃɨǁɰ ɰʰɰɽljȴ ǁljɰȈǼȶljǁ ɽɁ ljȶȃƃȶƺlj ȈȶǁȈʤȈǁʍƃȢ ȢɁȶǼӸɽljɨȴ ɥljɨǹɁɨȴƃȶƺlj ƹʰ ɥɨɁʤȈǁȈȶǼ rewards tied to the Bank’s annual performance and/or growth Deferred Cash Mechanism & Pool Setting Approach Mechanism Approach Total Cash Benchmark řƃɨȈƃƹȢlj Āƃʰ Ȉȶ ɽȃlj ǹɁɨȴ Ɂǹ ĀljɨǹɁɨȴƃȶƺlj 9Ɂȶʍɰ Ɂɨ ljɧʍȈʤƃȢljȶɽ ČȃɁɨɽӸěljɨȴ ŽȶƺljȶɽȈʤlj ȴƃʰ ƹlj ƃʥƃɨǁljǁ ɽɁ ɽȃlj 9ƃȶȟԇɰ ČÃěӣÃĄěɰ ƃɰ ƺɁȴɥljȶɰƃɽȈɁȶ ǹɁɨ ǁɨȈʤȈȶǼ ɰʍɥljɨȈɁɨ ɥljɨǹɁɨȴƃȶƺlj throughout the performance year or term of employment (Full-Term Contract or otherwise gainfully employed). Determination of Amount Deferred The deferment of payment of a portion of variable pay will be adopted in view of managing ƃȶʰ ǹȈȶƃȶƺȈƃȢ ɨȈɰȟ ƃɰɰɁƺȈƃɽljǁ ʥȈɽȃ ČÃěӣÃĄěɰ ƺɁȴɥljȶɰƃɽȈɁȶӗ ʥȃȈȢlj ƃǁȃljɨȈȶǼ ɽɁ ȶljƺljɰɰƃɨʰ ƺɁȴɥȢȈƃȶƺlj ʥȈɽȃ ȢljǼȈɰȢƃɽȈɁȶɰ ɰljɽ ǹɁɨɽȃ ƹʰ 9ƃȶȟ ÇljǼƃɨƃ ÃƃȢƃʰɰȈƃӝ Pool Setting Approach yʍȶǁȈȶǼ Ɂǹ ɽȃlj 9ƃȶȟԇɰ ǁljɽljɨȴȈȶljǁ řƃɨȈƃƹȢlj Āƃʰ ƃȶǁ ɽȃlj ɰʍƹɰljɧʍljȶɽ :ƃɰȃ AljǹljɨɨƃȢ ǹɁɨ ɽȃlj ČÃěӣÃĄěɰӗ ʥȃljɨlj ƃɥɥȢȈƺƃƹȢljӗ Ȉɰ ɰȈȴʍȢƃɽljǁ ɽƃȟȈȶǼ ȈȶɽɁ ƃƺƺɁʍȶɽ ȴƃɨȟljɽ ƺɁȴɥljɽȈɽȈʤljȶljɰɰӗ funding rates and overall affordability. Mandatory deferral – Bonuses (short-term incentives) can be deferred over time subject to forfeiture or adjustment. 9Ɂȶʍɰ ÃƃȢʍɰ ӵ Ąljǹljɨɰ ɽɁ ɽȃlj ɥƃɨɽ Ɂǹ ɽȃlj ǁljǹljɨɨljǁ ƹɁȶʍɰ ɽȃƃɽ ȃƃɰ ȶɁɽ ʰljɽ ƹljljȶ ɥƃȈǁ Ɂʍɽ ƃȶǁ ƺƃȶ ƹlj ԆɨljƺȢƃȈȴljǁԇ ƹljƺƃʍɰljӗ for example, an acquisition’s due diligence is not carried out thoroughly. Clawback – This is applied to a bonus that has already been paid out. It can be reclaimed by the employer in, for example, cases of gross negligence or non-compliance. Percentage Fixed vs Percentage Variable yȈʯljǁ ĄljȴʍȶljɨƃɽȈɁȶ Variable Income (Bonus) ѹѸӝѵՐ ѶѷӝѻՐ The breakdown of the total amount of remuneration awards Ȉȶ ɨljɰɥljƺɽ Ɂǹ ČÃěɰ ƃȶǁ ÃĄěɰ Ȉȶ ѵѳѵѳ Ȉɰ ƃɰ ǹɁȢȢɁʥɰӖ Element No. of SMTs and MRTs Total Amount Basic Salary, Fixed ȢȢɁʥƃȶƺlj ծ 9Ɂȶʍɰ ѷѵ ĄÃѶѴӝѹѺ ȴȈȢȢȈɁȶ Benefits-in-Kind other Emolument ѷѵ ĄÃѹӝѵѴ ȴȈȢȢȈɁȶ BANK ISLAM MALAYS IA BERHAD INTEGRATED ANNUAL REPORT 2020 149