Overview Leadership Portfolio & Performance Sustainability & Governance Financial Statements and Other Information The above performance measures have been selected as a key measurement of wealth creation for Stapled Securityholders and the commitment of the Stapled Group towards sustainability. The final number of Stapled Securities to be released will depend on the Stapled Group’s performance against the pre-determined targets over the three-year qualifying performance period. This serves to align Management’s interests with that of Stapled Securityholders in the longer term and to deter short-term risk taking. No Stapled Securities will be released if the threshold target is not met at the end of the qualifying performance period. On the other hand, if superior targets are met, more Stapled Securities than the PSSP baseline award can be delivered, up to a maximum of 200% of the PSSP baseline award. The NRC has the discretion to adjust the number of Stapled Securities released taking into consideration other relevant quantitative and qualitative factors. Recipients will receive fully paid Stapled Securities, their equivalent cash value or combinations thereof, at no cost. For FY 2023, the relevant award for assessment of the performance achieved by CLAS is the award granted in FY 2021 where the qualifying performance period was FY 2021 to FY 2023. Based on the NRC’s assessment that the performance achieved by CLAS has exceeded the pre-determined performance targets for such performance period, the resulting number of Stapled Securities released has been adjusted accordingly to reflect the performance level. In respect of the Stapled Security awards granted under the PSSP in FY 2022 and FY 2023, the respective qualifying performance periods have not ended as at the date of this Report. Managers’ Restricted Stapled Security Plan (RSSP) Prior to FY 2023, the NRC granted awards which are conditional on targets set for a one-year performance period. A specified number of Stapled Securities will only be released to recipients at the end of the qualifying performance period, provided that minimally the threshold targets are achieved. Under the RSSP, an initial number of Stapled Securities (RSSP baseline award) is allocated conditional on the achievement of pre-determined targets in respect of the following performance conditions: (a) Profit After Tax & Minority Interest of the Stapled Group; and (b) Distribution per Stapled Security of the Stapled Group. The above performance measures have been selected as they are the key drivers of business performance and are aligned to Stapled Securityholder value. The final number of Stapled Securities to be released will depend on the Stapled Group’s performance against the pre-determined targets at the end of the one-year qualifying performance period. The Stapled Securities will be released in equal annual tranches over a vesting period of three years. No Stapled Securities will be released if the threshold targets are not met at the end of the qualifying performance period. On the other hand, if superior targets are met, more Stapled Securities than the RSSP baseline award can be delivered, up to a maximum of 150% of the RSSP baseline award. The NRC has the discretion to adjust the number of Stapled Securities released taking into consideration other relevant quantitative and qualitative factors. Recipients will receive fully paid Stapled Securities, their equivalent cash value or combinations thereof, at no cost. There were no performance-based awards granted under the RSSP in FY 2023. D Employee Benefits: The benefits provided are comparable with local market practices. Each year, the NRC evaluates the extent to which each of the key management personnel has delivered on the business and individual goals and objectives, and based on the outcome of the evaluation, approves the compensation for the key management personnel. In such evaluation, the NRC considers whether the level of remuneration is appropriate to attract, retain and motivate key management personnel to successfully manage CLAS for the long term. The CEO does not attend discussions relating to her own performance and remuneration. The Boards, together with the NRC, seek to ensure that the remuneration of the CEO and other key management personnel is strongly linked to the achievement of business and individual performance targets. The performance targets are set at realistic yet stretched levels each year to motivate a high degree of business performance with emphasis on both shorter-term and longer-term quantifiable objectives. ANNUAL REPORT 2023 115
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