PRINCIPLE A: BOARD LEADERSHIP & EFFECTIVENESS (CONT'D) Senior Management Remuneration The Manager also adopts the JCorp Group’s Employee Salary Scheme as a guiding principle to provide a competitive level of total compensation to attract and retain qualified and competent staff. It is also driven primarily based on performance as specified in its Performance Management Policy. With regard to application of Practice 8.2 which requires disclosure “on a named basis the top five senior management’s remuneration component including salary, bonus, benefits in-kind and other emoluments”, the Board is of the view that such disclosure is not applicable and mandatory because the Manager is not a listed entity; and the senior management’s remuneration is paid by the Manager. Nevertheless, the Board wishes to give assurance that the remuneration of Directors and Senior Management commensurate with their individual performance, taking into consideration of the REIT’s performance as it is benchmarked against the market. The remuneration packages of Senior Management are based on experience, expertise, skills and industry benchmarking. Driving Sustainability The Board Sustainability Committee (BSC) together with Senior Management takes responsibility for the governance of sustainability in setting the company’s sustainability strategies, priorities, and targets. Further, the Board is cognizant of the philosophy promoted by MCCG 2021, effective board leadership and oversight also require the integration of sustainability considerations in corporate strategy, governance and decision-making. As ESG is gaining importance, the BSC has been mandated with oversight functions on ESG including climate change risk. In compliance with the IFRS 1 and 2, the REIT’s Sustainability Report has addressed the issues related to sustainability-related financial disclosures and response to climate-related risks and opportunities. The Manager has established the Sustainability Management Committee (SMC) at the management level, which is led by the CEO and comprises the management team of the Manager, the Property Manager, and its counterparts. The SMC is dedicated to managing sustainability strategically, including the integration of sustainability considerations in the operations. Further, the advocating sustainability initiatives have been embedded in the performance evaluations of the Board and senior Management in line with Practice 4.4 of the MCCG 2021. The Board also ensures that they stay abreast with and understand the sustainability issues, hence all Directors are required to attend the Mandatory Accreditation Programme II: Leading for Impact for Directors of PLCs by the end of 2025. Gender Diversity and Inclusion The Manager is committed to fostering a diverse, equitable, and inclusive environment where every individual feels valued, respected, and empowered to contribute to the organization's success. This policy outlines the commitment to diversity, equity, inclusion, and belonging and the expectations have been set for the Manager. When selecting Directors, the process is based on objective criteria without discrimination on any gender, race, personal, or physical attributes that would hinder a person’s ability to perform as Director. All Board appointments are made on merit, in the context of the skills and experience the Board as a whole requires to be effective Corporate Governance Overview Statement 108 AL-SALĀM REIT ANNUAL REPORT 2024
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