reported to the NRC, and thereafter the Boards. The findings are considered by the Boards and follow up action is taken where necessary. No external facilitators were appointed to assist in the evaluation process of the Boards and Board Committees for FY 2024. Board and Board Committees The evaluation categories covered in the questionnaire include Board composition, Board processes, strategy, performance and governance, access to information and Board Committee effectiveness. The Boards also consider whether the creation of value for Stapled Securityholders has been taken into account in the decision-making process. For FY 2024, the outcome of the evaluation was satisfactory and the Boards as a whole, and each of the Board Committees, received affirmative ratings across all the evaluation categories. Individual Directors The evaluation categories covered in the questionnaire include Director’s duties, contributions, conduct and interpersonal skills, as well as strategic thinking and risk management. For FY 2024, the outcome of the evaluation was satisfactory and each Director received affirmative ratings across all the evaluation categories. The Boards believe that performance evaluation should be an ongoing process and seek feedback on a regular basis. The regular interactions between the Directors, and between the Directors and Management, also contribute to this ongoing process. Through such engagement, the Boards benefit from an understanding of shared norms between Directors which contributes to a positive Board culture. REMUNERATION MATTERS Principles 6, 7 and 8: Procedures for Developing Remuneration Policies, Level and Mix of Remuneration and Disclosure on Remuneration All fees and remuneration payable to Directors, key management personnel (including the CEO) and staff of the Managers are paid by the Managers. The Boards, assisted by the NRC, have a formal and transparent procedure for developing policies on Director and executive remuneration to the Boards for shareholders’ approval, as well as determining the remuneration of key management personnel (KMP). As at the date of this Report, all NRC members are non-executive Directors, all of whom (including the NRC chairman) are independent Directors. Under the NRC’s terms of reference, its key responsibilities are: (1) to oversee the Managers’ leadership development and succession planning for the CEO. The NRC oversees the process for selection of the CEO and reviews annually the career development and succession matters for the CEO. The Managers are committed to developing a strong talent pipeline to sustain its business growth, leveraging on the Sponsor’s established talent identification and succession processes. The NRC decides on the appointment of the CEO; and (2) to review and recommend to the Boards, remuneration frameworks for the Boards and KMP; including reviewing the specific remuneration package for each Director as well as for the KMP; and the administration of the Managers’ Stapled Security Plans. The Boards set the remuneration policies to support the Stapled Group’s business strategy and deliver sustainable returns to Stapled Securityholders. In its deliberations, the NRC also takes into consideration industry practices and norms in compensation to ensure market competitiveness. The NRC considers all aspects of remuneration, including termination terms, to ensure they are fair, and has access to remuneration consultants for advice on remuneration matters as required. It approves the specific remuneration package for each KMP (including the CEO), and recommends to the Boards for endorsement on the specific remuneration package for each Director. 75 Annual Report 2024
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