CORPORATE GOVERNANCE REPORT
(CONT’D)
For FY 2015, the remuneration for each Independent Director takes into account the relevant directors’ contribution and
responsibilities, including attendance and time spent at Board and Board Committeemeetings. The remuneration framework
for Independent Directors consists of a base fee for membership on the Board, chairing the Board, fees for membership
on Board Committees and chairing Board Committees and attendance fees for offsite meetings. All Non-Independent
Directors, including Mr Ketut Budi Wijaya, Non-Executive Director, Mr Alvin Cheng Yu Dong, Executive Director and CEO,
and Ms Viven Sitiabudi, Executive Director, do not receive any director’s fees.
Remuneration of Non-Executive Directors for FY 2015
Director’s Fees
(S$)
Mr Albert Saychuan Cheok
120,625
Mr Lee Soon Hoon, Phillip
70,000
Mr Douglas Chew
62,500
Mr Goh Tiam Lock
62,500
The remuneration and terms of appointment of Mr Alvin Cheng Yu Dong, Executive Director and CEO, and Ms Viven Sitiabudi,
Executive Director, were negotiated and endorsed by the Board. The aggregate remuneration received by Mr Alvin Cheng
Yu Dong and Ms Viven Sitiabudi include fixed salary, performance bonus and other benefits. The performance bonus and
increment are based on an annual appraisal. In particular, the performance bonus is linked to the stability and performance
of the net property income, distributable amount and distribution per unit of LMIR Trust over the preceding year and as
such it is in alignment with the performance of LMIR Trust and the interests of Unitholders. For the avoidance of doubt, Mr
Alvin Cheng Yu Dong and Ms Viven Sitiabudi were not involved in the decision of the Board on their own remuneration. A
breakdown in percentage of the aggregate remuneration of Mr Alvin Cheng Yu Dong andMs Viven Sitiabudi are set out below:
Remuneration of Executive Directors for FY 2015
Salary
Bonus
Allowances
and Benefits
Total
Between S$500,000 to S$750,000
Mr Alvin Cheng Yu Dong
73%
27%
0%
100%
Between S$250,000 to S$500,000
Ms Viven Sitiabudi
40%
45%
15%
100%
The Manager is aware of the Code’s requirement to disclose the exact quantum of the remuneration of the CEO. The
Board has assessed and decided against the disclosure of the exact quantum of the CEO and directors and has instead
disclosed the remuneration of the CEO and directors in bands of S$250,000. The Manager believes that such disclosure
is sufficient for providing greater transparency to Unitholders without prejudicing the interest of Unitholders. In view of
the highly competitive REIT management industry, the Manager believes that opting not to disclose the exact quantum
of the remuneration of the CEO and the Executive Director will minimise the risk of potential staff movements and loss
of key personnel which would cause undue disruptions to the management of LMIR Trust and which would not be in the
interests of Unitholders.
LIPPO MALLS INDONESIA RETAIL TRUST
50
