C A M B R I D G E I N D U S T R I A L T R U S T
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the Independent Directors’ fees are established once
every 3 years. The fees are dependent on the level of
responsibilities at the Board level, and where applicable,
additional responsibilities given in other committees set
up by the Board. The Independent Directors are paid a
basic fee and where applicable, additional fees are paid
for additional responsibilities. The Chairman of the Board
and ARCC is paid a higher fee compared with members
of the Board and ARCC in view of greater responsibilities
carried by that office. Most recently in 2015, the NRC, IC
and BFC were established. No additional fees were paid to
members of these committees for this period.
CEO and Key Management Personnel’s (“KMP”)
Remuneration
The NRC reviews the remuneration of the CEO and the KMP
of the Manager annually or as and when there is a significant
change to the structure of the Manager. The remuneration
components include fixed pay, fixed allowances, short-term
incentive bonus (also known as annual performance bonus)
and long-term incentive bonus.
The Manager’s Remuneration and Benefits Policy are
aligned to performance management in view that an
equitable and fair reward system drives organisational
performance. It is also designed to attract, motivate and
retain high-performing staff. On a periodic basis, the
Manager conducts an independent remuneration study
to align internal remuneration to market and industry
practices taking into consideration the size of the REIT as
well as the employees’ responsibilities, work experience
and educational qualifications. The Manager carries out
a formal bi-annual performance review process to re-
enforce strengths, identify improvements and plan for the
progressive development of the employees.
The Key Performance Indicators (“KPI”) set for the CEO are
linked to the performance of the Trust in terms of growth
and risk management. The long-term incentives (“LTIs”) are
determined by the Board on a non-discretionary basis.
To date, only the CEO and a few selected Heads of the
Departments are on the LTI programme, as they have
direct influence in driving the performance of the Trust. The
CEO’s LTIs are cascaded to the KMP, and adjusted to their
own areas of expertise. The LTI is distributed annually in
five tranches for the CEO and in three years for the KMP,
allowing continuity of commitment to the Unitholders.
CORPORATE GOVERNANCE
LTIs for 2015 were stretched targets set for management,
which covered:
a) growth in Assets under Management;
b) increase in unit price;
c) growth in total unit holders returns; and
d) sustainability of CIT profit
During 2015, none of these targets were met as the
market proved to be a relatively tough market, in terms of
acquisitions and growth in NPIs as explained elsewhere in
the Annual Report.
All employees of the Manager undergo the bi-annual review
process where the individual’s performance forms 50% of
the assessment; the other 50% is based on the company’s
performance relative to the Trust’s performance. The KPIs
of each staff are apportioned from their respective heads
of departments and closely monitored during informal
discussions between the managers and the staff. At year-
end, performance assessments are conducted with ratings
for each employee within each department. Additional
weightage is given to staff who are on roles that are directly
impacting the performance of the Trust.
The Company conducted a remuneration review through
an indipendent advisor McLagan/AEO Hewitt in late 2014
to assess the competitiveness of the staff remuneration
compared to the market. The results have led to the first
company-wide salary adjustment in FY2015. Each staff
was also evaluated to ensure that they are in the most
appropriate role and their remuneration was adjusted
according to the market standards.
To further align the interests of the CEO and the Manager’s
employees with that of the Unitholders, both CEO and staff
are rewarded, subject to the Board’s discretion, CIT Units
owned by the Manager through the Employee Shares
Incentive Program.
To date, no employee share option schemes have been
implemented by CIT.
