Employees under probation and contract employees will be excluded from the annual adjustment exercise. Only permanent employees who are active on the Company’ s payroll at the time of payout shall be eligible. Confirmed employees who have less than one year of service with the Company during that calendar year shall receive a pro-rated amount. Employees under probation and contract employees will be excluded from the annual bonus payout exercise. 1 Company Yearly Financial Performance and Ability to Pay: The Company sets its Key Performance Indicators (KPIs) every financial year during the annual budgeting process.
The two main components of the Company KPIs are Revenue Target and Operating Profit before Tax and Finance Expenses based on the unaudited year-end management accounts which shall be approved by the Managing Director/CEO. 2 Individual Performance: Performance Assessment framework is driven by the Company’ s KPIs which are categorized under 3 major perspectives namely Achievement¹ which is performance and responsibility-based, Initiatives² which is Program/Task-based (usually over a period of program life-span that can be more than 3 months) and Behaviour and Personal Skills³ which is attitude and competency-based. (Refer to Appendix - E)3 Economic performance and Market factor: Market factor is set by the top management of the Company after considering the current economic situation and future perception of the local economy for the next 24 months.
Singapore’ s GDP will be used as a benchmark in this exercise. Five economic categorizations will be considered: Boom (Boost of economic activity), Growth (Combined economic growth across all industries and sectors), Sustainable (Sustained and stable Economic Activity), Sunset (Period of slow-down, right before the recession) and Recession (Negative economic activity and output across industries and sectors).
The factors to be applied at each year of review shall be recommended by the Compensation Committee and reviewed and approved by the Managing Director/CEO.
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