IREIT Global
annual report 2014
Corporate
Governance Report
For the non-executive directors, the Manager has
adopted a director’s fee structure and level which are
aimed to be both market-competitive and internally
equitable.
Individual non-executive directors’ fees were
determined based on the following factors:
•
Roles and responsibilities;
•
Benchmarking against peers;
•
Effort committed; and
•
Skills and expertise.
The total costs of governance, as well as the average
director’s fees were targeted around the median of
the market.
The remuneration policy for management and key
employees is:
•
to provide a fair and competitive compensation;
•
to motivate higher level of performance;
•
to ensure quality staff retention; and
•
to correlate with the individuals’ performance as
well as IREIT and the Manager’s performance.
Individual executives, remuneration levels were
determined based on the following factors:
•
Roles and responsibilities;
•
Benchmarking against industry peers;
•
Unique skills and expertise; and
•
Experience.
The compensation consists of a guaranteed
component and an incentive component. The incentive
component is determined as a significant component
in the remuneration of the C-level executives and
should be paid in full upon full achievement of all
IREIT’s Key Performance Indicators (“KPIs”) or
proportionally to the percentage of KPIs achieved.
The Manager has engaged an independent human
resources consultant to conduct a review of the
Manager’s remuneration structure, for its non-
executive directors, management and employees.
Comparison is made against industry benchmarks
and comparable Singapore-listed REITs.
The consultant has provided the Manager its
observations and recommendations which confirms
the adequacy of IREIT’s remuneration structure and
remuneration levels, and their alignment with IREIT’s
remuneration policy.
Accountability and Audit Accountability
Principle 10:
Presentation of a balanced and
understandable assessment of performance, position
and prospects
The Board is responsible to give a balanced and
comprehensive report on the performance, position,
prospects, strategy and market outlook including
other price sensitive reports to the regulators (if
required). To ensure this is accomplished efficiently,
management provides timely, accurate and adequate
information to the Board.
The Board is required to release quarterly results
and full year results of IREIT as well as price
sensitive announcements and all other regulatory
announcements, as required by regulators. Quarterly
financial results and price sensitive information and
regulatory required announcements are disseminated
to Unitholders via SGXNET, press releases, IREIT’s
website, media and analyst briefings.
Risk Management and Internal Controls
Principle 11:
The Board is responsible for the
governance of risk. The Board should ensure that the
Ma ager maintains a sound system of risk management
and internal controls to safeguard IREIT’s assets and
Unitholders’ interests and should determine the nature
and extent of the significant risks which the Board is
willing to take in achieving its strategic objectives
The Manager has put in place sufficient and
effective risk control measures to address financial,
operational, compliance, information technology
security, and other potential risks. This is to safeguard
Unitholders’ interests and manage risk. The Board
