KIM HENG OFFSHORE & MARINE HOLDINGS LIMITED
36
Corporate Governance Report
In aggregate, the total remuneration (including CPF contribution, bonus and benefits-in-kind) paid to the top seven
(7) key management personnel (who are not Directors or the CEO) in FY2015 was S$1,445,084.
To maintain confidentiality on the remuneration policies of the Company, the Board is of the view that it is in the best
interests of the Company to keep the disclosure of remuneration of each individual Director and key management
personnel in salary bands.
The Group’s former Chief Operating Officer, Mr Tan Sek Khoon, retired from the Group on 13 January 2014. In
recognition and to reward Mr Tan Sek Khoon’s long service and contribution to the growth of the Group over the
past 40 years, the Group is paying him an honorarium of S$300,000 per annum for three (3) years after his retirement
until the financial year ending 31 December 2016. Save as disclosed, there are no termination, retirement and post-
employment benefits that may be granted to the Directors and key management personnel.
Pursuant to Guideline 9.4 of the Code, the details of the remuneration (which comprises salaries, bonuses and benefits-
in-kind only) of employees who are immediate family members of a Director or the CEO, and whose remuneration
exceeded S$50,000 during the year are disclosed below. During FY2015, the following immediate family members of
the Executive Chairman and CEO, Mr Tan Keng Siong Thomas, were employees of the Company:
Name
Family relationship
Designation
Compensation Band
Tan Sek Khoon*
Brother of Tan Keng Siong
Thomas
Nil
Band C
Tan Keng Hoe Melvin
Brother of Tan Keng Siong
Thomas
General Manager – Supply
Chain Management
Band D
Tan Wen Hao Justin Anderson Son of Tan Keng Siong
Thomas
General Manager
Band A
Tan Peck Ling Jocelyn
Daughter of Tan Keng Siong
Thomas
Head of Corporate Services
Band B
Tan Peck Ching Jeliane
Daughter of Tan Keng Siong
Thomas
Senior Purchasing Manager
Band B
*
Mr
Tan Sek Khoon retired from the Group with effect from 13 January 2014. In deriving the compensation band for Mr Tan Sek Khoon, the honorarium of
S$300,000 was included in the computation.
Band A: Compensation from S$100,001 to S$150,000 per annum
Band B: Compensation from S$150,001 to S$200,000 per annum
Band C: Compensation from S$250,001 to S$300,000 per annum
Band D: Compensation from S$300,001 and above per annum
Save as disclosed above, none of the full-time employees are related to the Directors or substantial shareholders.
The Company had entered into fixed-period service agreements with the Executive Directors, namely, Mr Tan Keng
Siong Thomas and Ms Yeo Seh Hong, governing the terms and conditions of their employment by the Company. The
remuneration packages for the Executive Directors are based on terms stipulated in their service agreements. The
remuneration package of Mr Tan Keng Siong Thomas includes a profit sharing scheme that is performance related to
align his interests with those of the shareholders, while Ms Yeo Seh Hong is entitled to discretionary variable bonus (if
any).
The Company has adopted a performance share plan known as the “Kim Heng Performance Share Plan” (“
Kim Heng
PSP
”) and a share option scheme known as the “Kim Heng Employee Share Option Scheme” (“
Kim Heng ESOS
”) in
conjunction with the listing of the Company on the Catalist of the SGX-ST, which were approved by its shareholders
at an extraordinary general meeting held on 26 December 2013. Both the Kim Heng PSP and Kim Heng ESOS will
provide eligible participants with an opportunity to participate in the equity of the Company and to motivate them
towards better performance through increased dedication and loyalty. Both the PSP and ESOS form an integral and
