Creative 2009 Annual Report Download - page 7

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CREATIVE฀TECHNOLOGY฀LTD฀AND฀ITS฀SUBSIDIARIES
together with other management staff of the Company, also ensures that the Company complies with the applicable statutory and
regulatory rules.
The Directors have separate and independent access to the Company’s senior management and the Company Secretary at all
times. Should the Directors, whether as a group or individually, need independent professional advice, the Company will appoint
a professional advisor selected by the group or individual, and approved by the Chairman and CEO, to render the advice. The
cost of such independent professional advice will be borne by the Company.
PRINCIPLE 7: PROCEDURES FOR DEVELOPING REMUNERATION POLICIES
PRINCIPLE 8: LEVEL AND MIX OF REMUNERATION
PRINCIPLE 9: DISCLOSURE ON REMUNERATION
The Remuneration Committee (the “RC”) consists of three Directors, two of whom are independent non-Executive Directors. The
Chairman of the RC is Mr Sim Wong Hoo, an Executive Director. The other two members are Mr Lee Kheng Nam and Mr Ng
Kai Wa, both of whom are independent non-Executive Directors.
The principal functions of the RC are, among other matters, to recommend to the Board the structure of the compensation
programme for each Board member and the CEO (or executive of equivalent rank) to ensure that the programme is competitive
and sufficient to attract, retain and motivate each Board member and CEO of the required quality to run the Company successfully;
to review each Board member’s and CEO’s compensation annually and determine appropriate adjustments where necessary; and
to review any other long term incentive schemes which may be set up from time to time. The RC members are also members of
the committees administering the existing Employee Share Option Plans and the new Creative Performance Share Plan.
Mr Sim Wong Hoo, the Chairman and CEO of the Company, and the Chairman of the RC, has received a nominal sum of S$1 as
his annual remuneration for the financial years ended 30 June 2008 and 2009. He has also opted to be excluded from participating
in the new Creative Performance Share Plan.
Taking into consideration the remuneration package of Mr Sim Wong Hoo, there is minimal risk of any potential conflict of
interest, and his ability to perform the role of the Chairman of the RC is similar to that of a non-Executive Director. Accordingly,
the Board is of the view that he is suitable to perform the role of the Chairman of the RC.
The Company adopts a remuneration policy for employees comprising a fixed component and a variable component. The fixed
component is in the form of a base salary. The variable component is in the form of a variable bonus that is linked to the
Company’s and the individual employee’s performance. Another element of the variable component is the grant of performance
shares to employees under the Company’s Performance Share Plan. This seeks to align the interests of the employees with that
of the shareholders. Staff appraisals are conducted twice a year.
Each non-Executive Director is paid an annual Director’s fee of S$60,000 (pro-rated where length of service is less than one year)
and is subject to shareholders’ approval at the Annual General Meeting. The Director’s fee proposed to be paid to each of the
Directors for the financial year ended 30 June 2009 is as follows:
Name฀of฀Director฀ Director’s฀Fee*
Lee฀Kheng฀Nam฀ S$60,000
Ng฀Kai฀Wa฀ S$60,000
Tan฀Lip-Bu฀฀ S$35,000฀
(Resigned฀on฀30฀January฀2009)฀
Tang฀Chun฀Choy฀฀ S$45,000฀
(Resigned฀on฀30฀March฀2009)฀
Lee฀Gwong-Yih฀฀ S$5,000฀
(Appointed฀on฀12฀June฀2009)฀
*฀Executive฀Directors฀are฀not฀paid฀a฀Director’s฀Fee.
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