receive regular performance and career development reviews where employees are highly encouraged to discuss their performance, areas for improvement, development needs and career aspirations. To ensure that CLAS’ compensation package and benefit programmes remain competitive and comprehensive, CapitaLand engages third-party consultants to benchmark CLAS’ remuneration packages against the different talent markets. Salaries are reviewed using these benchmarks as well as each employee’s job scope and responsibilities to ensure that they commensurate with market practice. Besides the base salary, other components of the compensation package include short-term cash bonuses and performance-based long-term share awards. The overall annual variable bonus pool is determined based on the achievement against a holistic set of quantitative and qualitative targets in the Balanced Scorecard dimensions of Financials, Execution, Future Growth, Talent Management and Sustainability (including Environment, Social and Governance factors). These targets are cascaded across the organisation, thereby creating alignment across business units. The amount of bonus awarded to each staff is further based on their relative contributions and individual performance. Staff at managerial grades are eligible to receive performance-based long-term share awards. Sustainability targets are integrated into CLAS’ Performance Share Plan and the share awards will vest over three years. CLAS also practises pay parity and rewards men and women fairly based on merit, ability and experience for comparable roles across the organisation’s hierarchy. Its hiring and incentive systems focus on performance and is gender-agnostic. Staff pay is also market benchmarked based on job roles using gender-neutral pay surveys provided by independent remuneration consultants. From the 2023 group-level benchmarking exercise, no major pay gap was found13. Re-Employment Opportunities CLAS leverages CapitaLand’s transition assistance programme to engage with employees who are approaching retirement, starting nine months before their retirement date. This programme seeks to evaluate their career options, which may include early retirement, step-down positions or consultancy roles. CapitaLand has a re-employment policy to enable employees to work beyond the retirement age in the respective countries, if they are still able and willing to continue contributing. In FY 2023, there were 24 CLAS employees aged above 62. In cases where employees experience involuntary career endings, CapitaLand initiates one-on-one conversations to explore suitable redeployment opportunities for the employee within the company, or collaborate with external agencies, such as the Employment & Employability Institute, to secure appropriate placements that leverage the affected employee’s skills and experience. In accordance with the Tripartite Guidelines on the Re-employment of Older Employees, affected Singapore-based employees who choose to exit the company without accepting the re-deployment opportunities will receive an employment assistance payment to support their transition. Respect for Freedom of Association CLAS respects its employees’ right to freedom of association and adheres to the Industrial Relations Act that allows trade unions to represent employees for collective bargaining. CapitaLand also works closely with the unions to foster a conducive and productive working environment for the mutual benefit of both the company and the employees. In the event of significant operational changes, CapitaLand will ensure the unions and staff are engaged in advance for consultation to minimise potential operational disruption and impact to those affected. Ascott was the first in the hospitality industry in Singapore to form a jobs and skills training partnership with the Food, Drinks and Allied Workers Union, echoing the Labour Movement’s strategy of upskilling workers in tandem with industry’s transformation through the ground up efforts of the Company Training Committee. About 37% of CLAS’ global workforce is covered by collective bargaining agreements. Notwithstanding this, all other CLAS employees not covered by collective bargaining agreements will continue to have their key employment terms aligned to the relevant collective bargaining agreements in the countries. Talent Management CLAS actively seeks innovative, dynamic and talented individuals to fuel its growth and adopts a holistic approach to manpower planning. This includes developing internal talent and hiring talent across different career stages, from entry-level graduates to mid-career professionals and industry veterans. As part of its regular succession planning process, CLAS constantly builds its management bench strength by identifying and developing promising talents. In 2021, CLAS established a Nominating and Remuneration Committee which regularly reviews the succession plans for the Boards and Board Committees as well as the key management personnel of CLAS’ Managers. On an annual basis, CLAS identifies and reviews suitably qualified candidates from both within and outside of the organisation who could be considered for key positions when the need arises in the immediate, medium and long term. 13 The average gender pay gap for CLI (comparison is for base salary and other cash incentives) is about 8% in favour of females at non-executive levels, 3% in favour of females at executive levels and 11% in favour of males at middle management levels. At senior management levels with female representation, the average pay gap is 25% in favour of males. There are three levels of senior management with no female representation. For reference, the 2023 Organisation for Economic Co-operation and Development average gender wage gap is 12%. SUSTAINABILITY REPORT 2023 48
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