Cordlife Group Limited
Annual Report 2016
35
Corporate
Governance Report
Principle 8: Level and Mix of Remuneration
As noted above, one of the responsibilities of the RC is to review the remuneration framework of the Board and key
management personnel in the Group, and to consider and review the remuneration package and/or service contract
terms for each of the Directors and key management personnel.
For FY2016, Carrots Consulting Pte Ltd (“Carrots Consulting”) and its associated company, Align HR Consulting Pte
Ltd, were engaged to provide professional advice on remuneration and human resource related matters respectively.
Carrots Consulting and its principal consultant, Mr Johan Grundlingh, do not have any other relationship with the
Company’s Management or any of its Directors which could affect their independence and objectivity. Cordlife is one
of the many clients of Carrots Consulting and the total revenue generated from Cordlife in FY2016 represents less
than 5 percent of its total revenue. As such, Carrots Consulting does not place over-reliance on income from the
Company that would affect its independence in advising the Company.
Remuneration of the Executive Directors and key management personnel
In setting the remuneration package of the Executive Directors, the Company makes a comparative study of the
packages of executive directors in comparable industries and takes into account the performance of the Company
and that of the Executive Directors.
The compensation structure is designed to ensure that the level and mix of remuneration is competitive, relevant
and appropriate in finding a balance between current and long-term compensation. The Company has in place the
following incentive plan in FY2016:-
Share Grant Plan
At an Extraordinary General Meeting held on 18 October 2013, the shareholders of the Company approved the
Cordlife Share Grant Plan (the “Plan” or the “SGP”) for the award of rights (the “Awards”) to participants of the Plan to
receive fully-paid ordinary shares, free of charge, upon the participant achieving the prescribed performance targets
and upon expiry of the prescribed vesting period. The RC of the Company has been designated as the Committee
responsible for the administration of the Plan.
The Plan is a performance incentive scheme which forms an integral part of the Group’s incentive compensation
program. Persons eligible to participate in the Plan (the “Participants”) comprise key senior management and
employees of the Company and Non-Executive Directors at the absolute discretion of the RC. The Plan is established
with the objective of motivating the Participants to strive towards performance excellence, long term prosperity of
the Group, and promoting their organisational commitment, dedication and loyalty towards the Group. In addition, the
Plan will make employee remuneration sufficiently competitive to recruit new employees and retain existing employees
whose contributions are important to the long term growth and profitability of the Group.
The categories of awards under the Plan in FY2016 are as follows:
Performance Share Award
The FY2016 contingent awards under the Performance Share Award are granted conditional on meeting performance
targets set based on the following Group corporate objectives measured over a performance period of two financial
years:
Group’s Average Return on Invested Capital (ROIC); and
Group’s Average Absolute Total Shareholder Return (TSR) measured as a multiple of Cost of Equity
Each of the above objectives has a weightage of 50% towards the final performance achievement computation.
