Page 110 - Annual Report 2014

Breakdown of Directors’ Remuneration Overview

The following shows the composition of Directors’ remuneration for the financial year ended 31 December 2014:

Executive Director’s Remuneration

Name of Executive Director Fixed(1) Variable(2) Benefits(3) Share-based Compen- Total
($) ($) ($) sation(4) ($)
Tan Tong Hai ($)
955,136 3,261,791(5)
881,145 77,923 1,347,587 Strategy

Non-Executive Directors’ Remuneration

Name of Non-Executive Directors Cash-based Share-based Total
($) ($) ($)
Tan Guong Ching
Kua Hong Pak 169,400 72,600 242,000
Peter Seah Lim Huat 96,950
Nihal Vijaya Devadas Kaviratne CBE 96,950 -(a) Performance
Sio Tat Hiang(b) 155,500
Steven Terrell Clontz(b) 108,850 46,650 170,000
Lim Ming Seong 148,500
Teo Ek Tor 119,000 51,000 159,500
Liu Chee Ming 166,500
Robert J. Sachs 103,950 44,550 165,500
Nasser Marafih 134,500
Takeshi Kazami(b) 111,650 47,850 121,000
137,500
116,550 49,950
61,250
115,850 49,650 Governance

94,150 40,350

84,700 36,300

96,250 41,250

61,250 -(c)

(1) Fixed refers to base salary, Annual Wage Supplement and fixed allowances earned for the year ended 31 December 2014. Financials

(2) Variable refers to incentives paid and accrued for the year pursuant to StarHub’s performance bonus scheme and Economic Value Added (EVA) scheme for the year ended
31 December 2014. StarHub’s performance bonus scheme is the “balanced scorecard” scheme used to determine the annual performance bonuses payable to StarHub’s
employees. The EVA scheme rewards for sustainable shareholder value creation over the medium term, with alignment to StarHub’s strategic business objectives. Under
this scheme, each of StarHub’s employees is given clear objectives on his personal scorecard, which are aligned to StarHub’s overall strategic objectives of growth and
profitability, creating customer value, operational efficiency, excellence and optimal customer management, and developing a motivated and well trained workforce. Under
the EVA scheme, a notional EVA bank account is set up for each senior executive, into which the annual EVA performance bonus earned by him each year is credited. One
third of the total amount in his EVA bank account is payable annually at a later date in the following financial year, and the remaining balance in his EVA bank account is
payable to him upon his resignation or termination of employment (other than for cause), subject to certain conditions being met. The balance in the EVA bank account will
increase or decrease depending on StarHub’s EVA performance in subsequent years.

(3) Benefits are stated on the basis of direct costs to StarHub, and include tax equalisation, housing and other non-cash benefits such as leave, medical scheme and club
membership.

(4) Based on the fair values of PSP and RSP contingent shares granted in 2014, using the Monte Carlo simulation model.

(5) For the financial year 2013, the total remuneration paid to the CEO was $3,176,499.

(a) Mr Kua Hong Pak had declined the share award and will only receive the cash component of his remuneration. Mr Kua holds no shares in StarHub.

(b) Fees are payable to Director’s employer company.

(c) Mr Takeshi Kazami had declined the share award and will only receive the cash component of his remuneration. Mr Kazami holds no shares in StarHub.

Individual performance objectives are set at the beginning of The target AVB for the CEO and key management personnel
each financial year. The objectives are aligned to the overall is pre-set at a fixed percentage of their annual base salary,
strategic, financial and operational goals of the Group, and and is adjusted based on the Group performance and the
are cascaded down to a select group of key management achievement of individual performance targets at the end of
personnel using scorecards, creating alignment between the performance year. The final AVB payout can range from 0 to
performance of the Group, the Company and the individual. 1.5 times of the target.
While the performance objectives are different for each
executive, they are assessed on the same principles across EVA Incentive Plan (EIP)
the following four broad categories of targets: The EIP rewards employees for sustainable shareholder value
creation over the medium term achieved by growing profits,
• Business deploying capital efficiently and managing the risk profile
• Customer and risk time horizon of the business. A portion of the annual
• Process performance-related bonus of the key management personnel
• People is tied to the EVA achieved by the Group in the financial year.

StarHub Ltd | Annual Report 2014 107