Creative 2013 Annual Report Download - page 9

9
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
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 sufcient 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 Creative Employee Share Option Plans and the Creative Performance Share Plan.
Mr Sim Wong Hoo, the Chairman and CEO of the Company, and the Chairman of the RC, has been receiving a nominal sum of
S$1 as his annual remuneration since the nancial year ended 30 June 2008. He has also opted to be excluded from participating
in the Creative Performance Share Plan.
Taking into consideration the remuneration package of Mr Sim Wong Hoo, there is minimal risk of any potential conict 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 xed component and a variable component. The xed
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 nancial year ended 30 June 2013 is as follows:
Name of Director Director’s Fee*
Lee Kheng Nam S$60,000
Ng Kai Wa S$60,000
Lee Gwong-Yih S$60,000
* Execuve Directors are not paid a Director’s Fee.
Each non-Executive Director also participates in the Company’s stock options and performance share plan. The details of the
Directors’ stock options and performance share awards are set out in the Directors’ Report. Non-Executive Directors are not paid
any salary, bonus, or other remuneration.
The number of top ve key executives of the Group (who are not Directors or the CEO) in remuneration bands is as follows:
 
S$500,000 to S$749,999 1
S$250,000 to S$499,999 3
Less than S$250,000 1