This Remuneration Policy serves as a guide to determine the appropriate level and composition of remuneration for Directors and Senior Management. This policy takes into account the desire of Kossan Rubber Industries Bhd (“KOSSAN” or “the Company”) to attract, retain and motivate Directors and Senior Management who will drive the Company’s business strategies to ensure sustainable growth and resilience.
The remuneration for Non-Executive Directors (“NEDs”) shall reflect the board responsibilities, skills, and time commitment required. In determining the remuneration levels and composition, consideration is also given to similar positions in comparable organisations. The remuneration of an NED shall be by a fixed sum, and not by a commission on or a percentage of profits or turnover.
The remuneration for Executive Directors (“EDs”) and Senior Management is determined based on the scope of duties and responsibilities, qualifications, skills and experience required, as well as the achievement of the Company and individual in line with the Company’s strategies. The remuneration of EDs and Senior Management will consist of salaries, bonuses and other benefits. The remuneration of an ED may not include a commission on or a percentage of profits or turnover.
The remuneration of Directors and Senior Management is reviewed by the Remuneration Committee and recommended to the Board of Directors for approval. The remuneration of NEDs will subsequently be recommended to the shareholders for approval.
Directors shall abstain from deliberations and voting on decisions in respect of their own remuneration package at the Remuneration Committee and Board of Directors meetings.
This Remuneration Committee shall periodically review the Remuneration Policy of the Company. Any proposed changes to this policy shall be submitted to the Board for deliberation and approval.
