Executive Compensation Principles | Suggested Industry Standard Practice |
Design | ● The board should oversee the compensation system spearheaded by the remuneration committee and monitor it to align it with prudent risk-taking. ● Must be sufficient to attract, retain and motivate executive officers but must be balanced against the bank's interest and not pay excessive remuneration. ● Avoid excessive risk-taking when remuneration is tied to performance ● No sitting allowance, directed fees for the executive directors, whereas non-executive directors would be entitled to such benefits. ● Equity-based remuneration such as share option shall be tied to performance subject to shareholders’ approval at AGM. |
Transparency | Shares held by executives shall be disclosed in annual reports. |
Independence | Independent directors shall determine the compensation of the executives. |