HAW PAR CORPORATION LIMITED
38
Level and Mix of Remuneration and Disclosure on Remuneration
The RC takes into consideration current industry norms on compensation and adopts a remuneration policy in line with industry
practices. None of the Non-executive Directors have any service contract or consultancy agreement with the Company. Non-
executive Directors, including the Chairman of the Board, are paid directors’ fees which comprise a basic fee and additional
fees for serving on Board Committees. The RC recommends directors’ fees to the Board for endorsement prior to submission
to shareholders for approval at each annual general meeting. The Company’s share option scheme allows for grants of share
options to non-executive directors. To date, the Non-executive Directors have not been granted any share option.
The Group remunerates its employees at market competitive levels, commensurate with their performance and contribution
to the long-term interests and success of the Group. The remuneration package comprises fixed and variable compensation,
provident fund and share options (for eligible employees). A variable bonus scheme is in place. Key management in the
Group is rewarded by share options, taking into consideration working capital efficiency, productivity, current year earnings
and long-term sustainability and growth of the respective businesses and their contribution thereto.
In the annual review of the remuneration of the Executive Directors, the RC takes into consideration performance of the
individuals and comparative remuneration of similarly placed persons in the market. The performance criteria include
achievement of financial objectives using financial indicators such as overall profitability and return on assets over a period of
time. Their remuneration is reviewed annually by the RC and include a variable bonus component which is performance‑based.
Share options are granted to the Executive Directors and eligible key executives, based on their performance during the year.
These share options are granted at market price around the date of grant and can only be exercised after a vesting period
of usually one year to ensure that employees’ interest gel with the longer term performance of the Group. In the event of
misconduct on the part of a participant in the share option scheme, the RC may in its absolute discretion treat any outstanding
option as lapsed and null and void. More information on the Haw Par Corporation Group 2002 Share Option Scheme can be
found in the Directors’ Report and Note 25(b) to the financial statements.
Disclosure of Remuneration
The details of the remuneration of each Director for FY 2014 are as follows:
Table 2:
Name
Directors’
Fees
(1)
Base or fixed
salary
Variable bonus
Benefit-in-kind
and others
Total
Share options
granted
$’000
$’000
$’000
$’000
$’000
No. of shares
Wee Ee Lim
–
667
550
85
1,302
–
Han Ah Kuan
–
291
214
115
620
66,000
Wee Cho Yaw
82
–
–
–
82
–
Sat Pal Khattar
56
–
–
–
56
–
Hwang Soo Jin
51
–
–
–
51
–
Lee Suan Yew
51
–
–
–
51
–
Chew Kia Ngee
56
–
–
–
56
–
Peter Sim Swee Yam
36
–
–
–
36
–
Gn Hiang Meng
14
–
–
–
14
–
Wee Ee-chao
36
–
–
–
36
–
(1) Directors’ fees are subject to shareholders’ approval at the forthcoming annual general meeting on 28 April 2015.
CORPORATE GOVERNANCE REPORT
(CONTINUED)
