notes to the financial statements - Investor Relations
notes to the financial statements - Investor Relations
notes to the financial statements - Investor Relations
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CWT Limited<br />
38<br />
CORPORATE GOVERNANCE<br />
It has also taken in<strong>to</strong> account fac<strong>to</strong>rs such as efforts and time spent, and <strong>the</strong> responsibilities of NEDs. The NRC has ensured that that<br />
<strong>the</strong> proportion of <strong>the</strong> remuneration especially that of key executives is linked <strong>to</strong> corporate and individual’s performance, and that <strong>the</strong><br />
performance-related elements of remuneration should form a significant portion of <strong>the</strong> <strong>to</strong>tal remuneration package of <strong>the</strong> Executive<br />
Direc<strong>to</strong>r, whose remuneration package was designed <strong>to</strong> align his interests with those of shareholders.<br />
Presently, <strong>the</strong>re is no long-term incentive scheme for employees in place.<br />
The Company shall review <strong>the</strong> pay and employment conditions within <strong>the</strong> industry and those from peer companies <strong>to</strong> ensure that <strong>the</strong><br />
Direc<strong>to</strong>rs and Senior Management are adequately remunerated.<br />
Additionally, <strong>the</strong> NRC has come <strong>to</strong> a consensus that it is not feasible <strong>to</strong> enforce contractual provision on reclaim of incentive<br />
components of remuneration from <strong>the</strong> Executive Direc<strong>to</strong>r or key management personnel. Such provision is presently absent from<br />
<strong>the</strong> relevant employment contracts.<br />
Disclosure on Remuneration (Principle 9)<br />
Every Direc<strong>to</strong>r on <strong>the</strong> Board during Financial Year 2011 (FY2011) received a basic fee. In addition, he would have received <strong>the</strong><br />
Chairman’s allowance if he were <strong>the</strong> Board Chairman, as well as <strong>the</strong> relevant allowance (depending on whe<strong>the</strong>r he is <strong>the</strong> Chairman<br />
or Member of <strong>the</strong> relevant Board Committee) for each position he has held on a Board Committee, subject <strong>to</strong> an overall cap on <strong>the</strong><br />
<strong>to</strong>tal fees and allowances <strong>to</strong> be received by him. If he occupied a position for part of FY2011, <strong>the</strong> fee or allowance payable will be<br />
prorated accordingly.<br />
Based on <strong>the</strong> existing approved direc<strong>to</strong>r fee structure, <strong>the</strong> Direc<strong>to</strong>rs’ fees for FY2011 have been computed and summarised as<br />
follow:<br />
DIRECTOR FY2011 FEES<br />
Loi Kai Meng S$220,000<br />
Jimmy Yim Wing Kuen S$175,000<br />
Liao Chung Lik S$95,000<br />
Tan Wee Liang S$75,000<br />
Hu Jian Ping S$60,000<br />
Total Fees for FY2011 S$625,000<br />
All NEDs received 100% fixed fees for <strong>the</strong>ir services in FY2011 in accordance with <strong>the</strong> approved fee structure. The fees payable <strong>to</strong><br />
each of <strong>the</strong> NEDs fall within <strong>the</strong> S$250,000 band.<br />
Total fees payable for FY2011 of S$625,000 is S$30,000 lower than FY2010’s fees of S$655,000 which reflects fewer board<br />
meetings held in FY2011 compared <strong>to</strong> FY2010.<br />
The NRC has recommended and <strong>the</strong> Board has endorsed <strong>the</strong> proposed Direc<strong>to</strong>rs’ Fees and it will be tabled for shareholders’<br />
approval at <strong>the</strong> AGM in April 2012.