My EG Services Berhad Annual Report 2020

MY E.G. SERVICES BERHAD Regisration No. 200001003034 (505639-K) 106 A. BOARD LEADERSHIP AND EFFECTIVENESS (CONT’D) II. Board Composition (cont’d) 7. Annual Evaluation (cont’d) The Board evaluation comprises performance evaluation of the Board and various board committees, Directors’ peer evaluation and assessment of the independence of the Independent Directors. The assessment is based on UISFF NBJO BSFBT SFMBUJOH UP z UIF #PBSE TUSVDUVSF z UIF #PBSE PQFSBUJPOT BOE z UIF SPMFT BOE SFTQPOTJCJMJUJFT PG (i) the Board JJ UIF $IBJSNBO BOE (iii) the board committees. For Directors’ peer evaluation, the assessment criteria include abilities and competencies, calibre and personality, technical knowledge, objectivity and the level of participation at Board and board committee meetings including his/ her contribution to Board processes. Any appointment of a new Director to the Board or board committee is recommended by the NC for DPOTJEFSBUJPO BOE BQQSPWBM CZ UIF #PBSE *O BDDPSEBODF XJUI UIF $POTUJUVUJPO PG UIF $PNQBOZ POF UIJSE PG UIF %JSFDUPST GPS UIF UJNF CFJOH TIBMM SFUJSF GSPN PGàDF BU FBDI "(. " SFUJSJOH EJSFDUPS TIBMM CF FMJHJCMF GPS SF election. The existing Constitution of the Company also provides that all directors shall retire at least once every three (3) years. During the year, the Board conducted an internally facilitated Board assessment. The results and recommendations from the evaluation of the Board and board committees are reported to the Board for full consideration and action. The Board was comfortable with the outcome and that the skills and experience of the current Directors satisfy the requirements of the skills matrix and that the Chairman of the Board possesses the leadership to safeguard the stakeholders’ interest and ensure the development of the Group. 5IF /$ BMTP DPOTJEFSFE UIF SFTVMUT PG UIF FWBMVBUJPO XIFO DPOTJEFSJOH UIF SF FMFDUJPO PG %JSFDUPST BOE SFDPNNFOEFE UP UIF #PBSE GPS FOEPSTFNFOU PG UIF %JSFDUPST TUBOEJOH GPS SF FMFDUJPO BU UIF GPSUIDPNJOH "(. PG UIF $PNQBOZ 5IF %JSFDUPST TUBOEJOH GPS SFUJSFNFOU CZ SPUBUJPO QVSTVBOU UP $MBVTF PG UIF $POTUJUVUJPO PG UIF $PNQBOZ BOE TVCKFDU UP SF FMFDUJPO BU UIF GPSUIDPNJOH "(. BSF %BUP %S /PSSBFTBI #JOUJ )BKJ .PIBNBE BOE %BUVL .PIE +JNNZ 8POH #JO "CEVMMBI %BUP 4SJ .PIE .PLIUBS #JO .PIE 4IBSJGG XIP XBT BQQPJOUFE PO /PWFNCFS XJMM BMTP TVCKFDU GPS SFUJSFNFOU QVSTVBOU UP UIF $POTUJUVUJPO PG UIF $PNQBOZ BOE SF FMFDUJPO BU the forthcoming AGM. III. Remuneration The objectives of the Directors and Senior Management’s Remuneration Policy and Terms of Reference of the RC are to provide fair and competitive remuneration to its Directors and Senior Management in order for the Group to attract and retain Directors and Senior Management of calibre to run the Group successfully. The responsibilities for developing the Directors and Senior Management’s Remuneration Policy, determining the remuneration packages of Directors, Group Managing Director and Senior Management, lies with the RC. Nevertheless, it is ultimately the responsibility of the Board to determine the remuneration of Directors and Senior Management. Based on the Directors and Senior Management’s Remuneration Policy, the remuneration packages for the Executive Directors comprises a fixed component (i.e. salary, allowance and etc.) and a variable component J F CPOVT CFOFàU JO LJOE BOE FUD XIJDI JT EFUFSNJOFE CZ UIF (SPVQ T PWFSBMM àOBODJBM QFSGPSNBODF JO FBDI financial year and is designed to support the Group’s strategy and provides a balance between motivating and DIBMMFOHJOH UIF #PBSE UP EFMJWFS UIF CVTJOFTT QSJPSJUJFT BOE TUSPOH QFSGPSNBODF XIJMF BMTP ESJWJOH UIF MPOH UFSN sustainable success of the Group. CORPORATE GOVERNANCE STATEMENT (CONT’D)