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HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2014
CORPORATE
GOVERNANCE
2
REMUNERATION MATTERS
2.1 Procedures for developing Remuneration Policies
Principle 7: There should be a formal and transparent procedure for developing policy on
executive remuneration and for fixing the remuneration packages of individual directors.
No director should be involved in deciding his own remuneration.
The Group’s remuneration policy is to provide compensation packages at market rates which reward
successful performance and attract, retain and motivate directors and key management executives.
The RC comprises solely of non-executive directors, the majority of whom, including the Chairman,
is independent. At the date of this report, the RC comprises the following members:–
Mr Kesavan Nair (Chairman and Independent Director)
Mr Ng Weng Sui Harry (Independent Director)
Mr Low See Ching (Non-Executive Director)
The RC meets at least once each year and at other times as required.
The RC is responsible for recommending to the Board a framework of remuneration for the directors
and senior management which is submitted to the whole Board for endorsement. The RC reviews
and approves recommendations on remuneration policies and packages for directors and senior
management in the interests of improved corporate performance.
The RC’s review of remuneration packages covers all aspects of remuneration, including but not
limited to directors’ fees, salaries, allowances, bonuses, options, profit sharing (where applicable)
and benefits-in-kind. The RC has full authority to obtain any external professional advice on matters
relating to remuneration as and when the need arises.
In setting out the remuneration packages, the RC would take into consideration pay and employment
conditions within the industry and in comparable companies. The remuneration packages should take
into account the Company’s relative performance and the performance of the individual directors/
senior management.
The RC’s recommendations are submitted to the entire Board. Each member of the RC shall abstain
from voting on any resolution concerning his own remuneration.
The Directors’ fees to be paid for any one year are submitted for shareholders’ approval at the AGM.
