NTUC Income AR 2018

RELATED PARTY TRANSACTIONS POLICY AND PROCESS The Related Party Transactions Policy of the Co-operative provides guidance and direction on the identification and approval of related party transactions. The policy prohibits all related party transactions, unless approved or ratified by the Board, or considered pre-approved as outlined in the policy.  On a quarterly basis, the management reports to the AC and Board any significant related party transactions that are identified and these transactions are reviewed at the AC and Board meetings. REMUNERATION POLICY Employees’ Remuneration The Co-operative’s policy is to remunerate its employees at competitive and appropriate levels, commensurate with their performance and contribution. It seeks to attract, motivate, reward and retain quality employees and foster a performance- oriented culture across the organisation. The total compensation package for employees comprises basic salary, fixed and variable bonuses, as well as other staff benefits. The approximate mix of remuneration of fixed and variable is, on average, 85% – 15% for employees and managers.  For senior management, the approximate mix is about 65%-35%.  In addition, a retention plan is provided for eligible senior management members. In order to ensure that its remuneration package is competitive, the Co-operative regularly reviews its base salary ranges and benefits package versus market data.  Each job is graded and base salary ranges are established (by using the market median as a midpoint guide) for each respective grade. Remuneration of Non-Executive Directors The honoraria payable to non-executive directors in 2018 was approved at the last AGM as follows: Base Fee $37,100 Appointment Fee Chairman $36,500 Deputy Chairman/Chairman of Audit, Risk Management, Investment, Human Resource & Remuneration and Nominating Committees $33,000 Member of Audit, Risk Management or Investment Committee $23,500 Member of Human Resource & Remuneration or Nominating Committee $9,000 Each director will be paid a fee based on the base fee and the two highest appointments he or she holds, regardless of the number of appointments. The director’s fee is pro-rated for new directors who come on board based on the period of service. Non-Executive Directors’ Remuneration for 2018 Name of Director Director Fee Ronald Ong (1) $13,315 Kee Teck Koon $93,600 Sung Cheng Chih $103,100 Richard Shermon $84,100 Heng Chee How $46,436 Choong Tuck Oon $84,100 Lau Wing Tat $79,100 Pang Wai Yin $93,600 Joy Tan $69,600 Sim Hwee Hoon $69,600 Sim Hwee Cher (1) $30,184 Stephen Lee (2) $73,600 (1) Co-opted to the Board on 23 August 2018 (2) Stepped down from the Board on 31 December 2018 Immediate Family Member of Directors The Co-operative did not employ any immediate family member of a director in 2018. Corporate Governance 25 2018 ANNUAL REPORT