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CORPORATE GOVERNANCE REPORT
HOTEL ROYAL
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ROYAL MEMORIES
The RC recommends for the Board’s endorsement, a framework of remuneration which covers all aspects of
remuneration, including but not limited to directors’ fees, salaries, allowances, bonuses, benefits-in kind and
specific remuneration packages for each director. In addition, the RC reviews the performance of the Group’s
key management personnel taking into consideration the CEO’s assessment of and recommendation for
remuneration and bonus.
No member of the RC is involved in deliberating in respect of any remuneration, compensation or any form of
benefits to be granted to him.
The RC has access to appropriate expert advice inside and/or outside the Company on human resources
and remuneration matters of directors and key management personnel wherever there is a need to consult
externally. For FY2015, the RC has not consulted any external remuneration consultant.
The RC reviews the Company’s obligations arising in the event of termination of the executive directors and
key management personnel’s contracts of service, to ensure that such contracts of service contain fair and
reasonable termination clauses which are not overly generous with an aim to be fair and avoid rewarding poor
performance.
Number of Meetings:
The RC held one meeting during FY2015.
2.2 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, and (b) key management personnel to successfully manage the company.
However, companies should avoid paying more than is necessary for this purpose.
TheRC reviews annuallyandmakes recommendationon the remunerationof thedirectors and keymanagement
personnel to ensure that the level and structure of remuneration commensurate is 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 and (b) key management personnel to successfully
manage the Company.
Board Members
The directors’ fees paid to the directors are based on the number of meetings attended during the year, subject
to a minimum sum. The Chairman of the Board will receive an additional allowance that is equivalent to 100%
of his director’s fee for the Board. The Chairman of each sub-committee will receive an additional allowance
that is 50% of his director’s fee for the respective sub-committee. The directors’ fees are recommended by the
Board for approval at the Company’s Annual General Meeting. Save for the directors’ fees, the Independent
Directors do not receive any other forms of remuneration from the Company. The Independent Directors do not
have any service agreements with the Company.
The RC is of the view that the remuneration policy and amounts paid to directors and key management
personnel are adequate and in line with present market conditions.
