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EC World Real Estate Investment Trust ANNUAL REPORT 2016
Directors’ Fees (other than the Executive Directors)
Board Members
FY2016
Zhang Guobiao
100,000
Chan Heng Wing
52,500
David Wong See Hong
42,424
David Li Guosheng
39,773
Chia Yew Boon
37,121
The Chairman of the Board and of each Board Committee are paid a higher fee compared with members of the Board
and of such Board Committee in view of the greater responsibility carried by that office. NEDs are paid entirely in cash.
The remuneration of the Board and the employees of the Manager is paid by the Manager from the fees which it
receives from ECW and not paid by ECW.
The NRC has recommended the payment of a one-off additional fees amounting to S$20,000 to each Mr Chan Heng
Wing and Mr Chia Yew Boon, the NEDs of the Company for their additional efforts and time spent with Management
before and after the initial public offering (“IPO”) of ECW. The Board supported the NRC’s recommendation
and recommended the same to the Manager’s shareholder, who had approved the payment of the said fees in
February 2017.
The CEO and other Executive Directors, do not receive Director’s fees. Their compensation comprises a basic salary,
allowances and bonuses. The Board will, with the recommendation of the NRC, review the CEO and Executive
Directors’ specific remuneration packages to ensure its compliance with the substance and spirit of such directions
and guidelines from the MAS.
The NRC exercises broad discretion and independent judgement in ensuring that the amount and mix of remuneration
are in line with market practices, aligned with the interests of unitholders and promote the long-term success of ECW.
In establishing the remuneration structure of the key management personnel, the NRC ensures that the level and mix
of remuneration is competitively benchmarked against the relevant industry market rates and tied to the performance
of ECW and the individual employee. The total remuneration mix comprises fixed and variable components. The
fixed component comprises the base salary, annual wage supplement, fixed allowances and compulsory employer
contribution to an employee’s Central Provident Fund. The variable component comprises an annual bonus plan which
is linked to the achievement of annual performance targets for each key executive, which will be paid in cash or in the
units of ECW (which were received by the Manager as payment for its own fees). Annual performance targets are in the
form of both quantitative and qualitative measures and, are aligned to the business strategy for ECW Group and linked
to the performance of ECW.
The NRC has reviewed and recommended the payment of an additional month of year-end variable bonus amounting
to S$35,000 (“Variable bonus”) to each Mr Lai Hock Meng and Mr Goh Toh Sim on top of their contractual annual wage
supplement. The variable bonus was paid in cash in February 2017. In recognition of the CEO’s, Mr Lai Hock Meng and
the Executive Director, Mr Goh Toh Sim’s contributions during the IPO of ECW, the NRC had also recommended the
payment of a one-off bonus amounting to S$125,000 (“IPO bonus”) to each of them. The Board supported the NRC’s
recommendation and recommended the same to the Manager’s shareholder, who had approved the payment of the
said fees. The IPO bonus was paid in units of ECW totalling 308,640 at the price of S$0.81 per unit in February 2017.
No member of the Board will be involved in any decision of the Board relating to his own remuneration.