Page 166 - Bank Muamalat_AR24

164 BANK MUAMALAT MALAYSIA BERHAD

GOVERNANCE DISCLOSURES

REMUNERATION FOR SENIOR MANAGEMENT AND GOVERNANCE
MATERIAL RISK TAKERS
Board Oversight
The Remuneration Policy for Senior Management and
Material Risk Takers (MRTs) constitutes the foundation of The Board of Directors shall assume responsibility for
BMMB’s overarching risk management framework. overseeing the Remuneration Policy, ensuring its adherence
to regulatory mandates and alignment with BMMB’s strategic
Acknowledging the pivotal role of attracting, retaining, direction and long-term interest.
and incentivising top-tier talent in achieving organisational
objectives, BMMB is committed to maintaining a remuneration Remuneration Committee
structure that harmonises with its risk appetite and fosters a Entrusted with the pivotal role of scrutinising and endorsing
culture of prudent risk management. remuneration packages for senior management and MRTs,
the Remuneration Committee shall ensure compliance with
The primary objective of this policy is to outline the policy tenets, regulatory requisites, and industry benchmarks.
guiding principles, governance framework, and procedural
mechanisms that BMMB will adhere to in determining the Independent Review
remuneration packages of its senior management and
MRTs. These endeavors are directed towards ensuring BMMB shall periodically subject its remuneration practices
regulatory compliance and aligning with industry best to independent scrutiny by external experts, affirming their
practices. continued alignment with policy imperatives and regulatory
mandates.

PRINCIPLES
PROCEDURES
Equitability
Performance Assessment
BMMB shall uphold transparency, equity, and
non-discrimination in its remuneration structure, consonant A comprehensive performance evaluation, encompassing
with prevailing market/industry norms. both quantitative and qualitative measures, shall underpin
remuneration decisions, ensuring objectivity and consistency
Performance-based across all operational domains.
The remuneration framework shall be intricately tied to Remuneration Mix
performance metrics encompassing both financial and
non-financial parameters, reflective of BMMB’s strategic The remuneration structure shall strike a balance between
imperatives and enduring values. fixed and variable components, with variable pay subject to
deferral and contingent upon performance, thereby aligning
Risk alignment with BMMB’s risk posture and nurturing a culture of prudential
risk-taking.
Remuneration arrangements shall be congruent with BMMB’s
risk tolerance levels, fostering a culture that discourages Clawback and Malus
undue risk-taking and underscores prudent risk management
practices. Inclusion of clawback and malus provisions within
remuneration agreements shall empower BMMB to recoup
Sustainability variable pay in instances of misconduct, underperformance,
or material risk events, reinforcing accountability among
Embracing a long-term outlook, remuneration schemes shall senior management and MRTs.
be crafted to resonate with BMMB’s enduring interests and
stakeholders’ expectations, while adhering to principles of Disclosure
corporate social responsibility and environmental sustainability.
BMMB shall uphold transparency and accountability to
stakeholders by disclosing pertinent details regarding
remuneration practices for senior management and MRTs
in its annual report, encompassing remuneration structures,
performance criteria, and the link between remuneration and
risk.