CORPORATE GOVERNANCE OVERVIEW STATEMENT Deferred Cash Mechanism & Pool Setting Approach Mechanism Approach Total Cash Benchmark Variable Pay in the form of Performance Bonus or equivalent Short-Term Incentive may be awarded to BIMB’s SMTs/MRTs as compensation for driving superior performance throughout the performance year or term of employment (FullTerm 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 any financial risk associated with SMTs/MRTs compensation, while adhering to necessary compliance with legislations set forth by BNM. Pool Setting Approach Funding of the BIMB’s determined Variable Pay and the subsequent Cash Deferral for the SMTs/MRTs, where applicable, is simulated taking into account market competitiveness, funding rates and overall affordability. Mandatory deferral – Bonuses (short-term incentives) can be deferred over time subject to forfeiture or adjustment. Bonus Malus – Refers to the part of the deferred bonus that has not yet been paid out and can be ‘reclaimed’ because, 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. The breakdown of the total amount of remuneration awards in respect of SMTs and MRTs (including the Group CEO) in 2021 is as follows: Element No of SMTs and MRTs Total Amount Basic Salary, Fixed Allowance & Bonus 39 RM30.31 million Benefits-in-Kind and Other Emolument 39 RM6.25 million Percentage Fixed vs Percentage Variable 70.82% 29.18% Fixed Remuneration Variable income (Bonus) BANK I SLAM MALAYS IA BERHAD 178
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