AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 81 5.3 Nomination and Remuneration Committee (NRC) A. Membership (i) The committee shall have at least 3 members, all of whom shall be non-executive directors with the majority being independent directors. (ii) The members and the Chairperson shall be appointed by the Board. (iii) The appointment of members terminates when the member ceases to be a director of the Company. (iv) The NRC shall have no executive powers. (v) In the event of equality of votes, the Chairperson of the NRC shall have a casting vote. In the absence of the Chairperson of the NRC, the members present shall elect one of their members to chair the meeting. B. Purposes • Nomination (i) Identify and recommend candidates for Board directorship. (ii) Recommend directors to ill the seats on Board Committee. (iii) Evaluate the efectiveness of the Board and Board Committee (including the size and composition) and contributions of each individual director. (iv) Ensure an appropriate framework and plan for Board succession. (v) Assess the quality of performance and training needs are addressed. • Remuneration (i) Provide assistance to the Board in determining the remuneration of Executive Directors, Managing Director and Senior Management. In fulilling these responsibilities, the NRC is to ensure that executive directors and applicable senior management of the Company: • are fairly rewarded for their individual contribution to overall performance; • are compensated reasonably in light of the Company’s objectives; and • are compensated similar to other companies. (ii) Establish the Executive Director and/or Managing Director’s goals and objectives. (iii) Review the Executive Director and/or Managing Director’s performance against the goals and objectives set. 6. Remuneration Policies The remuneration of the Directors is paid by the Manager and not by the Fund. The remuneration of the Executive Director is structured based on linking rewards to corporate and individual performance. For Non-Executive Directors, they receive a basic fee, an additional fee for serving on any of the committees and an attendance fee for participation in meetings of the Board and any of the committee meetings. 7. Financial Reporting 7.1 Compliance Oicer The Manager has a designated compliance oicer working towards ensuring the compliance with all legislations, rules and guidelines issued by the Securities Commission and Bursa Securities as well as Al-Salām REIT’s Deed. 7.2 External Auditors The Board has established formal and transparent arrangements for considering how inancial reporting and internal control principles will be applied and for maintaining an appropriate relationship with the External Auditors through its Audit Committee. The Audit Committee also keeps under review the scope and results of the audit and its cost efectiveness as well as the independence and objectivity of the External Auditors. The Board ensures that the External Auditors do not supply a substantial volume of non-audit services. The appointment of External Auditors, who may be nominated by the Manager, must be approved by the Trustee. The External Auditors appointed must be independent of the Manager and the Trustee. The remuneration of the External Auditors must be approved by the Trustee.