Page 112 - Annual Report 2014

Table 3 Fixed(1) Variable(2) Benefits(3) Share-based Total Overview
(%) (%) (%) Compensation(4) (%)
$1,000,001 - $1,250,000 Strategy
Nicholas Tan(5) 40 17 3 (%) 100
Kevin Lim 44 19 4 100
Jeannie Ong 44 19 4 40 100
33
33

$750,001 - $1,000,000 49 19 5 27 100
Mock Pak Lum 49 20 5 26 100
Veronica Lai

Total $4,984,589 Performance

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

(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) Share-based compensation granted to Nicholas Tan includes a one-off time-based restricted award of 30,000 shares.

For the quarterly financial statements, the Board provides a • Mr Tan Tong Hai; and Financials
negative assurance confirmation to shareholders, in line with • Mr Sio Tat Hiang.
the SGX-ST Listing Manual. For the financial year ended 31
December 2014, the CEO and the CFO have provided assurance During the financial year ended 31 December 2014, the RC held
to the Board on the integrity of the financial statements for the two meetings.
Group. StarHub recognises that prompt and full compliance with
statutory reporting requirements is imperative in maintaining The RC has the following mandate:
shareholder confidence and trust.
• To review and recommend to the Board the type and level
Management updates the Board with monthly management of business risk that the Group undertakes in achieving its
and financial reports which explain StarHub’s performance (in business strategy, and the appropriate risk management
comparison with its forecasted performance and budget) and framework and policies for managing risks that are consistent
financial position on a timely basis. Other related business with StarHub’s risk appetite;
reports are also provided to the Board regularly and upon request
by the Board from time to time. • To provide oversight in the design, implementation and
monitoring of the risk management framework, and system
Risk Management and Internal Controls of internal controls (including operational, compliance
The Board takes responsibility for the governance of risks and to and information technology controls), and to ensure that
this end, has established and maintains a sound system of risk Management puts in place action plans to mitigate the risks
management and internal controls to safeguard shareholders’ identified where possible;
interests and StarHub’s assets.
• To review the adequacy and effectiveness of StarHub’s
The RC assists the Board in its discharge of this responsibility. internal controls and risk management systems, including
The RC comprises the following Directors: operational, compliance and information technology controls;

• Mr Tan Guong Ching (RC Chairman); • To review policies and procedures for timely risk identification
and containment; and

• To set and instill in StarHub, an appropriate risk-aware culture
for effective risk governance.

StarHub Ltd | Annual Report 2014 109