Megachem Limited Annual Report 2015 51 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. 9.1 Remuneration of the executive directors is stipulated in their respective service agreements with the Company (“Service Agreements”). Under the provisions of the Service Agreements, the executive directors shall be paid a monthly base salary and annual wage supplement and be provided with benefits commensurate with the position. The executive directors shall participate in a profit sharing bonus calculated based on a formula of audited Group’s net profit before tax, less (i) extraordinary items, (ii) non-recurring items and (iii) minority interest. Executive directors do not receive directors’ fees. There are no post retirement and severance benefits for the executive directors except the common practice of giving notice or salary in lieu of notice in the event of termination. 9.2 The remuneration of executive directors of the Company for FY2015 is set out below:- Name of Director % Breakdown of Remuneration Remuneration band Base salary Bonus Benefits in kind Mr Sidney Chew Choon Tee Band C 73% 19% 8% Mr Jeffrey Tan Bock Chia Band C 71% 20% 9% For the above disclosures, the category of remuneration band is as follows:- Band A : Below S$250,000 Band B : S$250,000 to below S$500,000 Band C : S$500,000 to below S$750,000 Having considered the sensitivity and confidentiality of the remuneration package, the Company took the view that disclosing the specific amount of remuneration of the directors may not be in the best interest of the Company. Therefore, no disclosure of the specific remuneration is made. Independent directors are paid only directors’ fees, subject to approval at the annual general meeting. The fees paid to independent directors comprise a basic fee, a fee for chairing a committee and a fee for being a member of the committee. For FY2015, total of S$146,000 was paid to independent directors. The remuneration of independent directors of the Company for FY2015 is set out below:- Name of Director Directors’ fees Mr Lee Bon Leong Band A Mr Chan Kam Loon Band B Dr Tay Kin Bee Band A For directors’ fees disclosure, the category of remuneration band is as follows:- Band A : Below S$50,000 Band B : S$50,000 to below S$100,000 Mr Atsushi Saito, the Non-executive Director, does not receive any remuneration.
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