26
GRAND BANKS YACHTS LIMITED
ANNUAL REPORT
2016
CORPORATE GOVERNANCE REPORT
7.3 If necessary, the RC should seek expert advice
inside and/or outside the company on remuneration
of all directors. The RC should ensure that existing
relationships, if any, between the company and
its appointed remuneration consultants will not
affect the independence and objectivity of the
remuneration consultants. The company should also
disclose the names and firms of the remuneration
consultants in the annual remuneration report, and
include a statement on whether the remuneration
consultants have any such relationships with the
company.
The RC regularly utilizes external expert advice and data to
assist in the evaluation of its compensation recommendations.
None of the RC members or Directors is involved in deliberations
in respect of any remuneration, compensation or any form of
benefit to be granted to him or someone related to him.
The Company’s current remuneration consultant is Mercer
(Singapore) Pte Ltd which has an independent and objective
relationship with the Group.
7.4 The RC should review 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. The RC
should aim to be fair and avoid rewarding poor
performance.
The RC reviews the Group’s termination clauses and termination
processes to ensure the clauses and processes are fair and
reasonable.
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.
Guidelines Of The Code
Grand Banks Corporate Governance Practices
8.1 A significant and appropriate proportion of executive
directors’ and key management personnel’s
remuneration should be structured so as to link
rewards to corporate and individual performance.
Such performance-related remuneration should
be aligned with the interests of shareholders and
promote the long-term success of the company.
It should take account of the risk policies of the
company, be symmetric with risk outcomes and be
sensitive to the time horizon of risks. There should
be appropriate and meaningful measures for the
purpose of assessing executive directors’ and key
management personnel’s performance.
In reviewing and determining the remuneration packages of the
CEO and the Group’s senior executives, the RC considers the
executive’s responsibilities, skills, expertise and contribution
to the Group’s performance when designing remuneration
packages. An appropriate proportion of their remuneration is
linked to individual and corporate performance and is aligned
with the interests of shareholders.
