MISC Annual Report 2017

MISC BERHAD | Annual Report 2017 140 The NRC further deliberated on the appropriate tool to monitor and track Board and individual Directors’ performance. The NRC places emphasis on identifying an enhanced tool to assess the Board performance and dynamics as a whole, in a neutral and open manner. In this regard, the NRC has requested Management to explore the use of independent consultants to assist in Board performance evaluation. In relation to assessment of individual Directors’ performance, the NRC also places emphasis on identifying the right tool or mechanism for conducting such assessment to facilitate adequate and sensible feedback. The NRC has similarly requested Management to explore the use of independent consultants to assist in conducting the individual Directors’ performance evaluation, targeted to be implemented for the FY2018 Board and Directors performance evaluation. iii. Succession Planning and Appointment of New Management Committee Members The NRC deliberated on the Succession Planning efforts and progress in the MISC Group, focusing mainly on the Management Committee Positions of the Company. This included deliberation on the criteria for assessing individuals for succession planning which include leadership and functional capabilities, cultural fit and readiness of individuals to the critical positions identified in the Company. The NRC gave specific focus to the succession planning of the President/Group CEO position of the Company and the Management Committee members of the Company. The NRC deliberated on the potential successors for the President/Group CEO position, including their level of readiness to assume the positions and certain areas of development to give attention to such individuals. The NRC also deliberated on certain critical positions within the Management Committee which were considered a priority for FY2017. For FY2017, the Management Committee positions which were of priority included the plan for the positions of Vice President, LNG Business and MD/ CEO of MISC Maritime Services Sdn. Bhd. NOMINATION AND REMUNERATION COMMITTEE REPORT In this regard, the NRC deliberated on the appointment of the new Vice President, LNG Business and MD/CEO of MISC Maritime Services Sdn. Bhd., including their appointment as Management Committee Members, and agreed to make the requisite recommendations to the Board. The new Vice President, LNG Business was appointed in August 2017, whereas the new MD/CEO of MISC Maritime Services Sdn. Bhd. was appointed in April 2017. iv. Directors’ and Senior Management Remuneration The Company’s policy for remuneration of its Directors is based on the PETRONAS Public Listed Companies Non-Executive Directors’ Guidelines and Remuneration Package. These Guidelines were updated by PETRONAS in November 2017 and applicable to all the public listed companies within the PETRONAS Group, including MISC Berhad effective 1 January 2018. The Management Committee Members’ remuneration is based on certain salary bands reflective of industry standards and categorised into 2 categories ie. MC 1 (for business heads) and MC 2 (for service unit heads). v. Company and President/Group CEO Performance Appraisal The Company’s performance against the FY2017 Balance Scorecard was deliberated by the NRC. The performance appraisal covered the following Scorecard dimensions, whereby specific ratings were given to each dimension based on “Minimum”, “Base” or “Stretch” achievements : • Financials • Strategic Initiatives • Operations • Health, Safety and Environment (HSE) • People Development Based on the Company’s performance against the FY2017 Balanced Scorecard, the NRC also deliberated on the individual Performance of the President/Group CEO of the Company for FY2017, and made the appropriate recommendations to the Board for further deliberation.