The Board has a formal and transparent procedure for developing policies onDirector and executive remuneration, and for fixing the remuneration packages of individual Directors and key management personnel. The NRC's scope of duties and responsibilities in relation to remuneration matters under its terms of reference include: (a) to review and determine the Board remuneration framework and the specific remuneration packages for the Directors; and (b) to review and determine the compensation framework and the specific remuneration packages for the CEO and other key management personnel. While Provision 6.1 of the Code provides for the NRC to make recommendations to the Board on such matters, the Board is of the view that such matters are best reviewed and determined by the NRC as part of its focused scope, and have delegated the decision-making on such matters to the NRC. The NRC reports any decisions made on such matters to the Board. This is accordingly consistent with the intent of Principle 6 of the Code. 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. For further information on the composition of the NRC, please refer to "Board Membership" under Principle 4 in this Report. 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 • Strengthen alignment to ESG practices Fair & Appropriate • Ensure competitive remuneration relative to the appropriate external talent markets • Manage internal equity such that remuneration is viewed as fair across the CICT Group • Significant and appropriate portion of pay-at-risk, taking into account risk policies of the CICT Group, symmetrical with risk outcomes and sensitive to the risk time horizon Effective Implementation • Maintain rigorous corporate governance standards • Exercise appropriate flexibility to meet strategic business needs and practical implementation considerations • Facilitate employee understanding to maximise the value of the remuneration programme 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 Overview Leadership Performance Framework Other Information ANNUAL REPORT 2023 149
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