Affin Implements Shares as Bonus, Reward Scheme For Key Senior Management

Affin Bank Berhad announces that it will be implementing a reward scheme for key senior management where the performance bonus will be given in the form of shares.

In a filing to Bursa, the financial institution added that the Reward Scheme will involve the payment of a portion of the discretionary performance bonus for the Key Senior Management for the financial year ended 31 December 2021 and future financial years, in the form of existing ordinary shares of Affin.

The Affin Shares will be purchased from the open market on Bursa Malaysia Securities Berhad and will be held in an omnibus share trading account and vested accordingly to the Key Senior Management upon the meeting of the terms and conditions of the Bonus. These terms and conditions are based on the Key Senior Management meeting the key performance indicators related to financial and business targets as well as risk management and regulatory compliance requirements.

Affin said the Key Senior Management comprises members of the senior management team under the category of principal officers, material risk takers, and other material risk-takers.

Rationale behind the proposition is to align the interests of the Key Senior Management with that of Affin share price performance given the higher correlation of their roles and functions to the successful implementation of the bank’s corporate goals and strategies.

Additionaly Affin says giving shares as bonus is also to recognise the contribution of the Key Senior Management whose services are valued and considered vital to the past and future growth of the Group, to reward the Key Senior Management by allowing them to participate in the Group’s profitability and eventually realise any capital gains arising from appreciation in the value of the Affin Shares, to motivate the Key Senior Management and promote higher performance through greater productivity and loyalty within the Group and to inculcate a greater sense of belonging and dedication as the Key Senior Management are given the opportunity to participate directly in the equity, thereby promoting a shared vision amongst the stakeholders to further enhance shareholders value and future growth of the Group.

Thus this is also in the hopes of possibly retain the Key Senior Management, hence ensuring that the loss of key personnel is kept to a minimum level; and to realign the remuneration of Key Senior Management with that of shareholder value creation, share price performance and future growth of the Group.

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