Page 47 - cosmosteel

ACHIEVING THE RIGHT BALANCE COSMOSTEEL ANNUAL REPORT 2013 45
4. CONTRACTUAL BENEFITS OF DIRECTORS
Since the beginning of the reporting year, no director of the company has received or become
entitled to receive a benefit which is required to be disclosed under section 201(8) of the
Act by reason of a contract made by the company or a related corporation with the director
or with a firm of which he is a member, or with a company in which he has a substantial
financial interest except as disclosed in the financial statements. Certain directors of the
company received remuneration from related corporations in their capacity as directors and
or executives of those related corporations.
There were certain transactions (shown in the financial statements under related party
transactions) with corporations in which certain directors have an interest.
5. SHARE OPTIONS
The company has an employee share option scheme known as the “CosmoSteel Employee
Share Option Scheme” (“the ESOS”). The ESOS complies with the rules of the SGX-ST as
set out in Chapter 8 of the Listing Manual. The ESOS provides 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. The ESOS, which forms an integral
and important component of its employee compensation plan, is designed to primarily reward
and retain Executive Directors, Non-Executive Directors and employees of the group whose
services are vital to its well being and success.
Under the rules of the ESOS, Executive Directors, Non-Executive Directors (including
Independent Directors) and employees of the group, who are not Controlling Shareholders
or their Associates, are eligible to participate in the ESOS.
Under the terms of the Service Agreements of the Chief Executive Officer, Mr Ong Chin Sum,
and the Executive Directors, Mr Ong Tong Yang and Mr Ong Tong Hai, they are entitled to
participate in an annual profit-sharing incentive bonus. As such, they have volunteered to be
excluded from participating in the ESOS.
In addition, in order to minimise any potential conflict of interest, all immediate family
members (as defined in the Listing Manual) of Mr Ong Chin Sum, Mr Ong Tong Yang and Mr
Ong Tong Hai, will also not be eligible to participate in the ESOS.
The ESOS is administered by the remuneration committee with powers to determine, inter
alia, the following:
(a) persons to be granted Options;
(b) number of Options to be offered; and
(c) recommendations for modifications to the ESOS.
di rectors’
repor t ( cont ’d)