The remuneration structure for the President and other key management personnel consists of the following components:
t
4"-"3:
Fixed pay comprises basic salary and the Company’s contribution towards the Singapore Central Provident Fund where
applicable.
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#0/64
Bonus is paid based on the Company’s and individual’s performance.
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05)&3 #&/&'*54
Other benefits comprise of usage of Company’s car and other benefits-in-kind.
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450$, 015*0/
The COSCO Group Employees’ Share Option Scheme 2002, approved by members of the Company on 8 May 2002, had
expired on 8 May 2012. The share options have been granted to align the president and key management’s interest with that
of shareholders. The options granted to them are made reference to the desired remuneration structure target and valued
based on the Binomial Valuation Model. Details of the share option scheme can be found in the “Directors’ Report” section of
the Annual Report.
C. ACCOUNTABILITY AND AUDIT
ACCOUNTABILITY
Principle 10
The Board has overall responsibility to shareholders for ensuring that the Group is well managed and guided by its strategic
objectives. In presenting theGroup’s annual andquarterly financial results to shareholders, theBoard aims toprovide shareholders
with a balanced and understandable assessment of the Group’s performance, position and prospects. Management provides
the Board with management accounts and other financial statements on a monthly basis or as and when required by the Board.
The Board takes adequate steps to ensure compliance with legislative and regulatory requirements, including requirements
under the listing rules of the securities exchange.
RISK MANAGEMENT AND INTERNAL CONTROLS
Principle 11
The Group maintains a robust and effective system of internal controls, addressing financial, operational, compliance and
information technology controls, and risk management systems, for all companies within the Group, but recognises that no
internal control system will preclude all errors and irregularities. The system is designed to manage rather than to eliminate the
risk of failure to achieve business objectives. The controls are to provide reasonable, but not absolute, assurance to safeguard
shareholders’ investments and the Group’s assets.
The Board is responsible for the governance of risk. The Board ensure that Management maintains sound system of risk
management and internal controls to safeguard shareholders’ interests and the Company’s assets, and should determine the
nature and extent of significant risks which the Board is willing to take in achieving its strategic objectives.
Corporate Governance and Transparency
43
COSCO Corporation (Singapore) Limited
Annual Report 2015
