Chief Executive Officer/executive director does not receive any director’s fee. None of the directors was involved in any
decisions concerning their own remuneration. Since year 2010, the remuneration of the non-executive directors was
increased nominally in year 2013 and has remained unchanged for calendar years 2014 and 2015. For FY2015, the
director’s fees paid to each of the following non-executive directors did not exceed S$250,000:
•
Mr. Lim Kok Hoong (Chairman)
• Mr. Puah Tuan Soon Benson
• Mr. Tan Bong Lin
• Dr. Tan See Leng*
• Mr. Ahmad Shahizam Bin Mohd Shariff*
^
• Dr. Lim Suet Wun*
• Mr. Tan See Haw*
• Ms. Rossana Annizah Binti Ahmad Rashid
#
* Director’s fees are paid to Parkway Group Healthcare Pte. Ltd.
^ Resigned with effect from 16 November 2015.
# Appointed with effect from 16 November 2015.
The remuneration of the Chief Executive Officer/executive director and the key management personnel of the Manager
are linked to the financial performance of PLife REIT and the Manager, with a larger percentage being linked to the
financial performance of PLife REIT. As the Manager is a dedicated REIT manager whose income is solely derived from
management fees payable by PLife REIT in exchange for its services, there is a direct correlation between the financial
performance of PLife REIT and the Manager. Accordingly, such form of compensation should incentivise the Chief
Executive Officer/executive director and the key management personnel to improve the performance of PLife REIT over
the long-term and to increase PLife REIT’s asset value and property income. In addition, there is transparency and
accountability to Unitholders due to full disclosure of the total amount of fees payable to the Manager, and Unitholders
are able to assess the performance of the Manager through the performance of PLife REIT. As such, the Board considers
that the remuneration policy will not result in the Chief Executive Officer/executive director and the key management
personnel prioritising the interests of the Manager over that of PLife REIT and its Unitholders.
The Board has assessed and decided against the disclosure of the remuneration of the Chief Executive Officer/executive
director and key management personnel on a named basis, whether in exact quantum or in bands of S$250,000, for the
following reasons:
1.
The remuneration of directors and employees of the Manager are not paid out of the deposited property of PLife
REIT (which is the listed entity), but is remunerated directly by the Manager from the fees that it receives.
2.
The Manager is of the view that disclosure of specific remuneration information may give rise to recruitment and
talent retention issues in light of the competiveness between REIT managers in Singapore because there are
relatively few REIT manager companies compared to the number of listed companies in Singapore so there are
competitive issues in recruiting and retaining competent personnel in this limited space.
3.
There is already full disclosure of the total amount of fees payable to the Manager in page 123 of this Annual Report.
The Manager does not consider it prejudicial to Unitholders’ interests if the remuneration of the Chief Executive Officer/
executive director and key management personnel is not specifically disclosed. Instead, the Manager believes that such
disclosure would be disadvantageous given the highly competitive conditions in the REIT industry where poaching of
executives is commonplace. As the retention of the Chief Executive Officer/executive director and key management
personnel is crucial for continuity and a stable management platform for the interest of PLife REIT, the Manager does not
wish to disclose such specific remuneration information.
No director or key management personnel of the Manager is paid in the form of shares or interests in the Manager’s
controlling shareholder or its related entities.
For FY2015, there were no termination, retirement and post-employment benefits granted to directors, the Chief Executive
Officer/executive director and the key management personnel other than the payment in lieu of notice in the event of
termination in the employment contracts of the Chief ExecutiveOfficer/executive director and the keymanagement personnel.
ParkwayLife REIT
Annual Report 2015
55
