SECTION 07 pg. 170 AL-SALĀM REIT During the financial year under review, the BNRC reviewed and recommended revisions to the Directors’ remuneration, which were subsequently approved by the Board and took effect in 2025. The revision was undertaken after considering the Board’s 2025 overall performance, competencies and relevant market comparisons. DISCLOSURE OF DIRECTORS’ REMUNERATION Practice 8.1 of the MCCG 2021 recommends detailed disclosure of individual Directors’ remuneration on a named basis, including a breakdown of fees, salary, bonus, benefitsin-kind and other emoluments. The Manager has clarified that the nomination, appointment and remuneration of Directors are undertaken at the Manager level, which is a private company within the JCorp Group, and not by the REIT itself. The appointment, re-appointment and remuneration of Directors of the Manager are therefore not subject to approval by the unitholders of the listed fund. In view of the above, the detailed disclosure requirement under Practice 8.1 of the MCCG 2021 is not applicable to the REIT. SENIOR MANAGEMENT REMUNERATION The Manager adopts JCorp Group’s Employee Salary Scheme as a guiding framework in determining the remuneration of its employees. The objective is to provide a competitive total compensation structure that is capable of attracting and retaining suitably qualified and competent personnel. Remuneration is primarily performance-driven and aligned with the Manager’s Performance Management Policy. In relation to Practice 8.2 of the Malaysian Code on Corporate Governance 2021 (“MCCG 2021”), which recommends disclosure of the top five senior management’s remuneration on a named basis, including a breakdown of salary, bonus, benefits-in-kind and other emoluments, the Board is of the view that such disclosure is not applicable. This is on the basis that the Manager is not a listed entity and the remuneration of senior management is paid by the Manager. Notwithstanding the above, the Board affirms that the remuneration of Directors and Senior Management is commensurate with their respective responsibilities and individual performance, taking into consideration the overall performance of the REIT and prevailing market benchmarks. The remuneration packages of Senior Management are structured based on experience, expertise, competencies and industry comparatives to ensure competitiveness and fairness. DRIVING SUSTAINABILITY The BSC, together with Senior Management, is responsible for overseeing the governance of sustainability matters, including the formulation of sustainability strategies, priorities and targets for the REIT. The Board recognises the emphasis placed by the MCCG 2021 on effective Board leadership in integrating sustainability considerations into corporate strategy, governance and decision-making processes. In light of the increasing importance of environmental, social and governance (“ESG”) matters, the BSC has been entrusted with oversight responsibilities over ESG-related risks and opportunities, including climate-related risks. In compliance with applicable financial reporting standards, including IFRS S1 and IFRS S2, the REIT’s Sustainability Report addresses sustainability-related financial disclosures, as well as climate-related risks and opportunities relevant to the REIT. At the management level, the Manager has established a Sustainability Management Committee (“SMC”), chaired by the CEO and comprising members of the Management team, the Property Manager and relevant stakeholders. The SMC is responsible for implementing sustainability initiatives and embedding sustainability considerations into the REIT’s operational activities. In line with Practice 4.4 of the MCCG 2021, sustainability considerations have also been incorporated into the performance evaluation of the Board and Senior Management. The Board ensures that Directors remain informed and competent in sustainability matters, and all Directors are required to attend the Mandatory Accreditation Programme II: Leading for Impact for Directors of Public Listed Companies by the end of 2025. CORPORATE GOVERNANCE OVERVIEW STATEMENT
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