CapitaLand Integrated Commercial Trust - Annual Report 2021

targets are met, more Units than the PUP baseline award can be delivered up to a maximum of 200% of the PUP baseline award. The NRC has the discretion to adjust the number of Units released taking into consideration other relevant quantitative and qualitative factors. Recipients will receive fully paid Units at no cost. For FY 2021, the relevant award for assessment of the performance achieved by the CICT Group is the award granted in FY 2019 where the qualifying performance period was FY 2019 to FY 2021. Based on the NRC’s assessment that the performance achieved by the CICT Group has met the pre-determined performance targets for such performance period, the resulting number of Units released has been adjusted accordingly to reflect the performance level. In respect of the Unit awards granted under the PUP in FY 2020 and FY 2021, the respective qualifying performance periods have not ended as at the date of this Report. CapitaLand Integrated Commercial Trust Management Limited Restricted Unit Plan In FY 2021, the Board granted awards which are conditional on targets set for a one-year performance period. A specified number of Units will only be released to recipients at the end of the qualifying performance period, provided that minimally the threshold targets are achieved. Under the RUP, an initial number of Units (RUP baseline award) is allocated conditional on the achievement of pre-determined targets in respect of the following performance conditions: (a) Net property income of the CICT Group; and (b) Distribution per Unit of the CICT Group. The above performance measures have been selected as they are the key drivers of business performance and are aligned to Unitholder value. The final number of Units to be released will depend on the CICT Group’s performance against the pre-determined targets at the end of the one-year qualifying performance period. The Units will be released in equal annual tranches over a vesting period of three years. No Units will be released if the threshold targets are not met at the end of the qualifying performance period. On the other hand, if superior targets are met, more Units than the RUP baseline award can be delivered up to a maximum of 150% of the RUP baseline award. The NRC has the discretion to adjust the number of Units released taking into consideration other relevant quantitative and qualitative factors. Recipients will receive fully paid Units at no cost. In respect of the Unit awards granted under the RUP in FY 2021, based on the NRC’s assessment that the performance achieved by the CICT Group has met the pre-determined performance targets for FY 2021, the resulting number of Units released has been adjusted accordingly to reflect the performance level. The Unit Plans of the Manager are performance-based and vest over a period of three years. Coupled with interlocking annual grants, this ensures ongoing alignment between remuneration and sustainable business performance in the longer term. D. Employee Benefits: The benefits provided are comparable with local market practices. At present, there are four key management personnel. Each year, the NRC evaluates the extent to which each of the key management personnel has delivered on the business and individual goals and objectives, and based on the outcome of the evaluation, approves the compensation for the key management personnel. In such evaluation, the NRC considers whether the level of remuneration is appropriate to attract, retain and motivate key management personnel to successfully manage CICT for the long term. The CEO does not attend discussions relating to his own performance and remuneration. Provision 8.1 of the Code requires an issuer to disclose the CEO’s exact remuneration amount and the requisite remuneration band for each of the other key management personnel (who are not also Directors or the CEO). The Board has considered carefully and decided that such disclosure would not be in the interests of the Manager or Annual Report 2021 187 Corporate Governance