Remuneration

There is no staff in GIL and all activities are provided by the Manager who is paid fees for its services, in accordance to the Management Agreement.

As part of the Corporate Governance Framework, the following principles apply on remuneration matters:

Principle 7: Procedures for Developing Remuneration Policies

GIL has a RC comprising entirely of three independent Directors. The responsibilities of RC include overseeing framework for remuneration, recommending policies and guidelines for directors’ remuneration, and reviewing the fees payable to the Manager.

The key terms of reference of the RC are:

  1. to recommend specific remuneration packages for each director as well as for the key management personnel (if any);
  2. to cover all aspects of the remuneration, including but not limited to directors’ fees, salaries, allowances, bonuses, options, share-based incentives and awards, and benefits in kind;
  3. to review the fees payable to the Manager, as and when necessary;
  4. to recommend any long-term incentive schemes;
  5. to recommend the incentive scheme framework and policies together with the amounts awarded; and
  6. to review GIL’s obligations arising in the event of termination of the executive directors’ and key management personnel’s (if any) contracts of service, to ensure that such contracts of service contain fair and reasonable termination clauses which are not overly generous.

For FY2015, the RC conducted a self-review against the responsibilities set out in the Remuneration Committee Charter and concluded that the RC has been adequately fulfilling its duties.

The Chairman of the RC is Mr Ronald Seah Lim Siang. The other committee members are Mr Adrian Chan Pengee and Mr Tan Kok Wee.

Currently, GIL does not engage any remuneration consultants as the fees payable to its non-Manager Nominated Directors are stipulated in its Bye-laws. The Manager Nominated Director does not receive any director fees.

Principle 8: Level and Mix of Remuneration

The Board comprises five directors, with a non-executive, non-independent Chairman, one Manager Nominated Director and three independent directors. The remuneration of these directors is disclosed under Principle 9 below. The remuneration of non-executive directors will be reviewed and recommended by the RC, taking into account factors such as effort and time spent, and responsibilities of the directors.

GIL has no employees or executive officers and has appointed the Manager to manage GIL. GIL compensates the Manager for its services in accordance with the terms of the Management Agreement. Any changes in the fee structure will be subject to the approval of Shareholders by Ordinary Resolution in general meeting, and for the purposes of such approval, the Manager and its Associates, if they hold any shares at the time of such meeting, will abstain from voting the relevant resolution. The Manager has its own remuneration committee which separately assesses the performance of the Manager’s Chief Executive Officer independently from the Company. The Manager is entitled to a Base fee calculated upon 1.0% of Net Investment Value up to S$1.5 billion and 1.5% of Net Investment Value in excess of S$1.5 billion.

The Manager is also entitled to the incentive fee, fixed fee, acquisition fee, divestment fee and debt raising fee and is reimbursed by GIL for third party expenses. The incentive fee is a performance-related fee designed to be aligned with the interests of the Shareholders and to promote the long-term success of GIL. For more details on the Manager’s Fee structure, kindly refer to page 16 of the 2015 Annual Report.

The Board has the sole discretion to pay up to 100% of the Manager’s fees in the form of shares in GIL rather than cash.

Principles 9: Disclosure on Remuneration

The Manager Nominated Director does not receive any director’s fees or other compensation from GIL for serving as a director or a member of a Board Committee of GIL or any of its subsidiaries.

Directors (including the Manager Nominated Director) are reimbursed for reasonable out-of-pocket expenses incurred in the course of attending meetings of the Board or Board Committees and for any expenses reasonably incurred in their capacity as directors of GIL or any of its subsidiaries. There are no termination, retirement and post-employment benefits which may be granted to the directors and the Manager Nominated Director. There are no variable or performance-related bonuses, benefit-in-kind, stock options grants, share-based incentives and awards, and other long-term incentives received by the directors.

GIL has adopted the following fee structure for non–Manager Nominated Directors for FY2015:

    Remuneration Per Annum 
 1.  Base remuneration fee  US$50,000 per Director
 2.  Fees for chairmanship of the Board and various Board Committees as well as membership in various Board Committees  
   a) Chairman of the Board  US$18,000
   b) Deputy Chairman of the Board (if applicable)  US$5,000
   c) Base fee for membership of ARMC  US$10,000 per Member
   d) Chairman of ARMC  US$5,000
   e) Base fee for membership of NGC  US$2,000 per Member
   f) Chairman of NGC  US$1,000
   g) Base fee for membership of RC  US$2,000 per Member
   h) Chairman of RC  US$1,000
 3. Fees for directorship of all subsidiary companies   US$5,000 per Director2

No immediate family members of the directors of the Board are employed by GIL or the Manager.

Footnote:

  1. For the avoidance of doubt, this fee only applies to non-Manager Nominated Directors of the Company. A separate fee is paid for other nominee directors who sit on the board of the Company’s subsidiaries.
© Copyright 2016
Global Investments Limited
© Copyright 2016
Global Investments Limited