Al-`Aqar Healthcare REIT Annual Report 2020

AL-`AQAR HEALTHCARE REIT Annual Report 2020 82 PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D) BOARD COMPOSITION (CONT’D) Board Evaluation The NRC carries out an annual evaluation of the effectiveness of the Board and the performance of the Board Committees against a set of criteria that encompasses a diverse set of skills and experience in the fields of, amongst others, accounting, business and management, marketing, risk management, information technology and finance. The assessment also includes an aspect of the Board’s and Board Committees’ structure, operational conduct and its role and responsibilities. The evaluation process was conducted internally and facilitated by the Company Secretaries. During the process, questionnaires were sent to the Directors, and the results were reported to the NRC. The summary of the evaluation is shared with the Board thereafter. The results of evaluation and recommendations of the NRC were considered by the Board and follow up action is taken where necessary with a view to enhancing the effectiveness of the Board in the discharge of its duties and responsibilities. The Board is also considering to enhance the evaluation by introducing and implementing a 360 degrees evaluation involving the Board, the management and the Chairman in totality. The proposal will be deliberated by the NRC and shall be tabled to the Board for approval for implementation. REMUNERATION The Board recognises that to attract, retain and motivate Directors and senior Management of good calibre to drive and pursue the long-term objectives of the Fund, it is important to have a fair and competitive remuneration package that commensurate with their experiences, skills, responsibilities, performances, contributions as well as benchmarking against the remuneration practices and trends by other similar players in the market. The NRC reviews and recommends to the Board on the framework of remuneration policy and package for the Directors and the senior Management personnel. It is to be noted that such remuneration is paid by the Manager and not by the Fund. The remuneration policy takes into account the demands, complexities and performance of the Manager as well as skills-set and relevant experiences required. For Independent Directors, the Board ensures that the remuneration does not conflict with their obligation to bring objectivity and independent judgment on matters discussed at the Board meetings. A brief overview of the Directors’ remuneration (comprising salaries, other emoluments, fees, meeting allowances and benefits- in-kind) for FY2020 is tabulated below: Range of Remuneration (per annum) Executive Directors Non-Executive Directors Up to RM100,000 - 6 RM101,000 – RM200,000 - - RM200,001 – RM300,000 - - RM300,001 – RM400,000 - - RM400,001 – RM500,000 - - RM500,001 and above 1 - Note: The above remuneration is to manage 2 funds i.e., Al-`Aqar Healthcare REIT and Al-Salām Real Estate Investment Trust. Details of the Directors’ and senior management’s individual remunerations are not disclosed as the Directors and senior management are remunerated by the Manager, and not by the fund. The Manager believes that the overview presented above is sufficient for public disclosure, and that the non-disclosure of individual remunerations is essential to protect the interests of the Manager and its officers. Corporate Governance Statement