CORPORATE GOVERNANCE REPORT
Level and Mix of Remuneration
Principle 8:
The level and structure of remuneration should be aligned with the long-term interest and risk policies
of the company, and should be appropriate to attract, retain and motivate (a) the Directors to provide
good stewardship of the company, (b) key management personnel to successfully manage the company.
However, companies should avoid paying more than is necessary for this purpose.
The Company has its own designated remuneration policy for the Executive Directors, which comprises a fixed
component and a variable component. The fixed and variable components are in the form of a base salary, allowance
and a variable bonus, which takes into account the individual Director and Group’s performance as well as the
market rates.
Mr Ng Cheng Lian (Executive Chairman), Mr Koh Thong Huat (CEO) and Mr Foo Joon Lye (Director (Operations)) are
paid based on their respective service agreements with the Company. The service agreements are subject to review
and renewal upon expiry, unless terminated by a notice in writing of not less than six months by either party.
The Independent Directors do not have service agreements with the Company. They are paid fixed Directors’ fees,
which are determined by the Board, appropriate to the level of their contributions, taking into account factors such
as the effort and time spent and the responsibilities of each Independent Director. The Directors’ fees are subject
to approval by shareholders at each AGM. Except as disclosed, the Independent Directors do not receive any other
remuneration from the Company.
The Company has adopted the ISOTeam PSP in June 2013. The ISOTeam PSP is administered by the RC. Please refer to
the “Directors’ Statement” section of this annual report for more information on the ISOTeam PSP.
Disclosure on Remuneration
Principle 9:
Each company should provide clear disclosure of its remuneration policies, level and mix of remuneration,
and the procedure for setting remuneration in the company’s annual report. It should provide disclosure
in relation to its remuneration policies to enable investors to understand the link between remuneration
paid to Directors and key management personnel, and performance.
The Board is of the view that full disclosure of the specific remuneration of Director and key management staff may be
prejudicial to its business interests, given the highly competitive business environment the Company operates in and
the irrevocable negative impact such disclosure would have on the Group.
A breakdown, showing the level and mix of each individual Director’s remuneration for FY2016 is set out below:
Remuneration Band and Name of Director
Fee
Salary*
Bonus Allowance
Total
$500,000 to $750,000
%
%
%
%
%
Ng Cheng Lian
–
47
47
6
100
Koh Thong Huat
–
51
44
5
100
Foo Joon Lye
–
39
55
6
100
Below $250,000
Tan Eng Ann
100
–
–
–
100
Soh Chun Bin
100
–
–
–
100
Ng Kheng Choo
100
–
–
–
100
Note:
* These amounts are inclusive of employer’s CPF contribution.
47
ISOTEAM LTD.
ANNUAL REPORT 2016
