Singapore Airlines 2011 Annual Report Download - page 39

ANNUAL REPORT 2010/2011 037
Board Compensation and Industrial Relations Committee (BCIRC)
The BCIRC comprised Mr Stephen Lee (Chairman), Mr David Gonski, Mr James Koh and Dr Helmut Panke.
All members of the Committee are non-executive directors. Although Mr Stephen Lee is not considered
independent under the Code of Corporate Governance, by virtue of his position as a member of the Temasek
Advisory Panel, the Board Nominating Committee is of the view that Mr Lee, being a non-executive Chairman,
is able to discern independently and detach himself from the Management in deciding on remuneration issues.
The BCIRC has been delegated the authority by the Board to review and approve recommendations on
remuneration policies and packages for key executives, and administer the Company’s EVA-based Incentive
Plan, Performance Share Plan and Restricted Share Plan for key senior executives. The award of shares to
senior executives is based on organisational and individual performance. Professional advice is sought by the
BCIRC, as it deems necessary in the development and execution of the remuneration plan for the Company’s
key executives.
Leadership development and succession planning in the Company, remains a key focus for the BCIRC.
In January 2011, Mr Goh Choon Phong succeeded Mr Chew Choon Seng as the Chief Executive Officer.
The Company has in place an annual review of high potential executives, capable of succeeding to key
management positions. Such high potential executives will be given exposure to key jobs in the organisation,
as part of their career development.
Harmonious industrial relations remains a key focus of the Company, and this is also monitored closely
by the BCIRC. The Company’s three unions, namely, ALPA-S representing the pilots, AESU, representing the
Administrative Officers, and SIASU, representing the General Staff (including Cabin Crew) hold regular meetings
with Management and Chairman of BCIRC.
Access to Information (Principle 6)
The Directors are provided with Board Papers in advance before each Board Meeting, to enable them to
be properly informed of matters to be discussed and/or approved. Board Papers contain both regular items
such as reports on its subsidiaries and associated companies, updates on business development, monthly
management accounts, and productivity and performance indicators, as well as matters for the decision or
information of the Board.
Directors have separate and independent access to Senior Management and the Company Secretary at all
times. Directors can seek independent professional advice if required. Such costs will be borne by the Company.
Remuneration Matters (Principles 7, 8 and 9)
Remuneration Mix
In addition to base salary and benefits, SIA has in place short-term and long-term incentive plans to motivate
and reward employees in striving to meet the targets set under these plans.