Singapore Airlines 2014 Annual Report Download - page 52

CORPORATE GOVERNANCE REPORT
Board Compensation and Industrial Relations Committee (“BCIRC”)
The BCIRC was chaired by Mr Stephen Lee, and comprised Mr Gautam Banerjee, Mr Hsieh Tsun-yan, Dr Helmut Panke and
Mr Jackson Tai. All members of the Committee are non-executive directors.
With reference to the guidelines of the Code, the Board considered the fact that Mr Lee had shown that since his appointment on
the Board, he had exercised independent business judgement in all matters affecting SIA, with a view to protect the interests of the
Company and all shareholders. Although Mr Lee has served on the Board beyond nine years, he has continued to demonstrate
strong independence in character and judgement in the discharge of his responsibilities as a Director of the Company. Accordingly,
the Board continues to consider Mr Lee as an independent non-executive Director of SIA.
The BCIRC reviews and recommends for the Board’s approval the general framework of remuneration for the Board and Relevant
Key Management Personnel1. The BCIRC also recommends the specific remuneration packages for each Director and Relevant
Key Management Personnel and administers the Company’s EVA-based Incentive Plan, Strategic Incentive Plan, Performance
Share Plan and Restricted Share Plan for 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 senior executives. For FY2013/14, Carrots Consulting Pte Ltd was engaged as a
remuneration consultant to provide professional advice on human resource matters. The principal consultant providing such
services was Mr Johan Grundlingh. Carrots Consulting only provides remuneration consulting services to the Company, and has
no other relationship with the Company.
Leadership development and succession planning in the Company remains 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 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 the Company and 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.
1 Relevant Key Management Personnel are employees holding the rank of Executive Vice President and above. For FY 2013/14, they comprised the
CEO and two Executive Vice Presidents.
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SINGAPORE AIRLINES