BIMB Integrated Annual Report 2017

44 4. Rate for all meeting fees should be standardized for all Board and Board Committee meetings to recognize the value of each member’s contributions; 5. The Chairman of the Board and the Board Committees to be remunerated at a premium given the additional role that they play in guiding and managing the Board and the Board Committee; and 6. The remuneration to be paid on a timely and periodic basis. The 2015 Report also recommended that in view of the increased regulatory expectations on the NEDs and potential legal prosecution, penalties and/or imprisonment, a Directors and Officers Liability (“D&O”) insurance/takaful coverage could be used to support and strengthen the Board governance. The 2015 Report also highlighted the importance for FHCs to assess the reasonableness of the remuneration by comparing it with peers in the market. When performing the peer comparison, the FHCs should identify appropriate peers based on factors such as market size, size of operations, strategic direction, challenges and financial targets. The Board should also determine an appropriate market position relative to its selected FHC peers that fairly reflect the FIs situation and assess whether the NEDs’ remuneration was reasonable. (2) Directors’ Fees The Board Charter states that the review of remuneration for the NEC is conducted every three (3) years to ensure that it remains competitive with the industry. The Board at its meeting held on 7 December 2016, approved the NRC recommendation for the proposed revision to the NEDs’ fees as set out below:- 1. Fixed monthly fees:- Monthly Fixed Fee Existing 2014-2016 Revised 2017-current Chairman Member Chairman Member Board RM7,500 RM3,500 RM10,000 RM4,000 BRC RM1,500 RM1,000 RM3,000 RM2,000 AEC RM1,500 RM1,000 RM3,000 RM2,000 NAC RM1,500 RM1,000 - - RC RM1,500 RM1,000 - - NRC - - RM2,000 RM1,000