CapitaLand Integrated Commercial Trust - Annual Report 2021

The Board also recognises that contributions by an individual Director can take different forms including providing objective perspectives on issues, facilitating business opportunities and strategic relationships, and accessibility to Management outside of the formal environment of Board and Board Committee meetings. Board Evaluation as an Ongoing Process The Board believes that performance evaluation should be an ongoing process and the Board achieves this by seeking feedback on a regular basis. The regular interactions between the Directors, and between the Directors and Management, also contribute to this ongoing process. Through this process of engaging its members, the Board also benefits from an understanding of shared norms between Directors which also contributes to a positive Board culture. The collective Board performance and the contributions of individual Directors are also reflected in, and evidenced by, the synergistic performance of the Board in discharging its responsibilities as a whole by providing proper guidance, diligent oversight and able leadership, and lending support to Management in steering CICT in the appropriate direction, as well as the long-term performance of CICT whether under favourable or challenging market conditions. REMUNERATION MATTERS Principles 6, 7 and 8: Procedures for Developing Remuneration Policies, Level and Mix of Remuneration and Disclosure on Remuneration All fees and remuneration payable to Directors, key management personnel (including the CEO) and staff of the Manager are paid by the Manager. The Board has a formal and transparent procedure for developing policies on Director and executive remuneration, and for fixing the remuneration packages of individual Directors and key management personnel. It has established the NRC to review the Board remuneration framework and determine the specific remuneration for the Directors. The NRC also reviews the compensation framework and remuneration for the CICT Group’s executives and approves the specific remuneration packages for the key management personnel. Guided by its terms of reference, the NRC oversees the development and succession planning for the CEO. This includes overseeing the process for selection of the CEO and conducting an annual review of career development and succession matters for the CEO. Remuneration Policy for Key Management Personnel The remuneration framework and policy are designed to support the implementation of the CICT Group’s business strategy and deliver sustainable returns to Unitholders. The principles governing the remuneration policies of the Manager’s key management personnel are as follows: Business Alignment • Focus on generating rental income and enhancing asset value over time so as to maximise returns from investments and ultimately the distributions and total returns to Unitholders • Provide sound and structured funding to ensure affordability and cost-effectiveness in line with performance goals • Enhance retention of key talents to build strong organisational capabilities Motivate Right Behaviour • Pay for performance - align, differentiate and balance rewards according to multiple dimensions of performance • Strengthen line-of-sight linking rewards and performance CapitaLand Integrated Commercial Trust 184 Corporate Governance