CORPORATE GOVERNANCE
The NHRRC has access to expert advice from external consultants where required. In FY2015/2016, the NHRRC made reference to
the Korn Ferry Hay Group’s report on market practice and trends in relation to the Directors’ remuneration. In relation to the CEO’s
and key executive officers’ remuneration, the Manager appointed Korn Ferry Hay Group as the external remuneration consultant.
The NHRRC undertook a review of the independence and objectivity of the external remuneration consultant and has confirmed
that the external remuneration consultant had no relationships with the Manager which would affect its independence.
Directors’ Remuneration
The structure of Directors’ fees for non-executive Directors comprises a base fee for serving as a Director and additional fees
for serving on Board Committees as well as for attendance at meetings. The Directors’ fees, take into account the following:
•
the financial performance and size of A-REIT and the Manager;
•
the Directors’ responsibilities and contributions; and
•
the industry practices and norms on remuneration, including the guidelines set out in the Statement of Good Practice
issued by the Singapore Institute of Directors.
Key Executive Officers’ Remuneration
The Manager advocates a performance-based remuneration system for key executive officers of the Manager. The remuneration
structure is designed with the objectives to retain, reward and motivate the individual to stay competitive and relevant. The
principles governing the Manager’s remuneration policy for its key executive officers are as follows:
a.
Reward and motivate employees to work towards achieving the strategic goals and business results of A-REIT and the
Manager.
b.
Enhance retention of key talents to build strong organizational capabilities and ensure competitive remuneration relative
to the appropriate external talent markets.
The total remuneration mix of key executive officers comprises fixed annual salary, performance incentives and benefits-in-kind:
a.
The fixed annual salary includes base salary, fixed allowances and compulsory employer’s CPF contribution.
b.
Performance Incentive Plan is essentially tied to the performance of A-REIT and that of the individual employee key
indicators include Distribution Per Unit (DPU), Net Property Income (NPI) and Total Unitholders Return (TUR) which are
aligned to the interest of the Unitholders.
c.
Retention Incentive Plan is tied to Ascendas-Singbridge group performance. As the Manager is a subsidiary of Ascendas-
Singbridge (the “Sponsor”), employees of the Manager are part of the larger group which allow the Manager increased
flexibility and effectiveness to reward and motivate them with better career growth and exposure. The Manager will be
in an advantageous position to attract and retain qualified key executive officers and employees. This will also provide
continual development of talent and renewal of leadership for sustaining long term business growth of A-REIT. The
rationale of granting the Retention Incentive Plan is aligned with Unitholders’ interest.
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A-REIT ANNUAL REPORT
2015/2016
