GHL System Berhad Annual Report 2020

163 a n n u a l r e p o r t 2 0 2 0 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 CONT’D 32. RELATED PARTIES DISCLOSURES (cont’d) (c) Compensation of key management personnel Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the entity, directly and indirectly, including any Director (whether executive or otherwise) of the Group and of the Company. The remuneration of Directors and other key management personnel during the financial year was as follows: Group and Company 2020 2019 RM RM Short term employee benefits 4,573,842 4,635,846 Contributions to defined contribution plans 584,381 531,041 Share options granted under ESS 65,875 347,303 5,224,098 5,514,190 Other key management personnel have been granted the following number of options under the ESS during the financial year: Group and Company 2020 2019 As at 1 January 6,844,500 7,820,000 Bonus issue 400,000 - Resigned - - Exercised (6,044,500) (975,500) As at 31 December 1,200,000 6,844,500 The terms and conditions of the share options are detailed in Note 23 to the financial statements. 33. CAPITAL AND FINANCIAL RISK MANAGEMENT (a) Capital management The primary objective of the capital management of the Group is to maintain a strong capital base and safeguard the ability of the Group to continue as a going concern whilst maintaining an optimal capital structure, so as to maximise shareholders value. The management reviews the capital structure by considering the cost of capital and the risks associated with the capital. No changes were made in the objectives, policies or procedures during the financial years ended 31 December 2020 and 31 December 2019. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividend paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. Total capital is managed at Group level, which comprises shareholders’ funds, cash and cash equivalents and bank borrowings.