Singapore Airlines 2012 Annual Report Download - page 44

042 SINGAPORE AIRLINES
Board Compensation and Industrial Relations Committee (BCIRC)
The BCIRC is chaired by Mr Stephen Lee, and comprises Mr David Gonski, Mr James Koh (until 31 August 2011), Mr Jackson
Tai (from 1 September 2011) 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 exercise independent judgement 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 remain a key focus for the BCIRC. The Company has
in place an annual review of high potential executives, to ensure an adequate pipeline for succession planning in key
management positions. Such high potential executives will be given exposure to key jobs in the organisation, as part of their
career development.
The Company continues to put much emphasis in maintaining harmonious industrial relations and the BCIRC plays an
important role in providing appropriate guidance to Management in this regard. 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 of 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
SIA’s remuneration mix for Senior Management comprises fixed and variable components. Variable components comprise short
and long term incentives, which are dependent on Group, Company and individual performance. The remuneration mix aims
to provide a good balance between competitiveness with the market, as well as rewards for short and long term objectives.
Fixed Component
The fixed component comprises base salary, the Annual Wage Supplement (AWS) and cash allowances. The fixed components
are benchmarked to comparable positions in the market, and reflect the market worth of the positions.
Corporate Governance Report
For the period 1 April 2011 to 31 March 2012