ESR AR 2019 EN

103 DIRECTORS’ REPORT ESR Annual Report 2019 EMOLUMENT POLICY The emolument of the Directors and senior management were paid in the form of remuneration, salaries, equity settled share options, allowances, contributions to pension schemes, employee benefits, discretionary bonuses, fees and retirement benefits. The remuneration package of employees includes salary, bonuses and other cash elements. In general, the Company determines employee salaries based on each employee’s qualifications, experience, position and seniority. It has designed an annual review system to assess the performance of employees, which forms the basis of the determinations on salary raises, bonuses and promotion. The Group is subject to social insurance contribution plans organised by relevant local governments. The Company believes that the salaries and benefits that its employees receive are competitive with market standards in each country where it conducts business. The Company also has in place long-term incentive schemes with details set out in paragraphs headed “KM ESOP, Tier 1 ESOP and Post-IPO Share Option Scheme” in this report. The Company has established a Remuneration Committee to review the policy and structure of the remuneration for the Directors and senior management and make recommendations on the remuneration packages of individual executive Directors and senior management. In general, the Company determines the emolument payable to its Directors based on each Director’s qualifications, experience, time commitment and responsibilities, salaries paid by comparable companies as well as the performance of the Company. CHANGES OF INFORMATION IN RESPECT OF DIRECTORS Save as disclosed in the section headed “Board of Directors” in this report, there was no change to information which is required to be disclosed and has been disclosed by the Directors pursuant to paragraphs (a) to (e) and (g) of rule 13.51(2) of the Listing Rules.