Annual Report 2025 83 recommends to the Board for endorsement on the specific remuneration package for each Director. While Provision 6.1 of the Code provides for the NRC to make recommendations to the Board on the specific remuneration packages for each KMP (including the CEO), the Board is of the view that such matters are best reviewed and determined by the NRC as part of its focused scope and has delegated the decision-making on such matters to the NRC. The NRC reports any decisions made on such matters to the Board. This is accordingly consistent with the intent of Principle 6 of the Code. In FY 2025, the NRC appointed an independent remuneration consultant, Willis Towers Watson (WTW), to provide professional advice on Board and executive remuneration. The appointed independent remuneration consultant advises the NRC on the compensation of the KMP including, but not limited to, the reasonableness of compensation levels in relation to the performance achieved, the competitiveness of compensation levels against relevant industry peers, compensation trends and practices around the world. The consultant is not related to the Manager or any Directors, its controlling shareholder or its directors or CLI’s related corporations. Remuneration Policy and Framework The remuneration policy and framework for the KMP (including the CEO), which take reference from the compensation framework of CLI, are designed to support the implementation of the CLAR Group's strategy and deliver sustainable returns to Unitholders. The Manager is a subsidiary of CLI which also holds a significant stake in CLAR. This association facilitates the Manager in attracting and retaining better qualified management talent. It further provides an intangible benefit to the employees of the Manager by offering the depth and breadth of experience associated with an established corporate group and enhanced career development opportunities. The Remuneration Policy has four key principles: Business Alignment Fair & Appropriate • Focuses on generating rental income and enhancing asset value over time so as to maximise returns from investments and ultimately the distributions and total returns to Unitholders. • Provides sound and structured funding to ensure affordability and cost-effectiveness in line with performance goals. • Enhances retention of key talents to build strong organisational capabilities. • Strengthens alignment to ESG practices. • Ensures competitive remuneration relative to the appropriate external talent markets. • Manages internal equity such that remuneration is viewed as fair across the CLAR Group. • Puts significant and appropriate portion of pay-atrisk, taking into account risk policies of the CLAR Group, symmetric with risk outcomes and sensitive to risk time horizon. Motivate Right Behaviour Effective Implementation • Pay for performance - align, differentiate and balance rewards according to multiple dimensions of performance. • Strengthens line-of-sight linking rewards and performance. • Maintains rigorous corporate governance standards. • Exercises appropriate flexibility to meet strategic business needs and practical implementation considerations. • Facilitates employee understanding to maximise the value of the remuneration programmes.
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