KENANGA ANNUAL REPORT 2017

Succession Plan 1. Board and Board Committee The Board had in October 2015 formalised the Board Succession Planning Framework which entails the guiding principles for effective succession planning, as well as the detailed procedure in ensuring a smooth transition in the Board’s process and functioning as existing Directors leave and new ones come on board. 2. Senior Management In July 2015, the Board had, upon the NRC’s recommendation, approved the Talent and Succession Management Framework and Methodology for Kenanga Group, which aims at ensuring ready successors for leadership positions capable of driving business growth and achievement of Kenanga Group’s strategic business plan, ensuring a pool of qualified and competent staff prepared and ready to fill up critical positions within the Group as required; and to ensure effective development, engagement and retention of high potential employees. FEES Chairman of the Board RM440,000.00 Deputy Chairman of the Board RM390,000.00 Director RM270,000.00 Chairman of AC/NRC/GBRC RM40,000.00 Member of AC/NRC/GBRC RM30,000.00 MEETING ALLOWANCE Board Meetings RM1,000.00 AC/NRC/GBRC Meetings RM1,000.00 The payment of Directors’ fees will be made after obtaining the shareholders’ approval at the Annual General Meeting (“ AGM ”). Non-Executive Directors Remuneration Framework 1. The Company aims to set remuneration levels which are sufficient to attract and retain the Directors needed to operate the Company successfully, taking into consideration all relevant factors including the function, workload and responsibilities involved, but without excessively over-paying to achieve its goal. The level of remuneration of the GMD and Senior Management personnel is determined by the NRC after giving due consideration to compensation levels of comparable positions amongst other similar companies in Malaysia. 2. The NRC carries out the annual review of the overall remuneration policy for Directors, the GMD and Senior Management whereupon recommendations are submitted to the Board for approval. 3. The NRC also reviews annually the performance of the GMD, Chief Executive Officers of the subsidiaries of the Company, as well as Senior Management and submits recommendations to the Board for approval accordingly. 4. For the financial year ended 31 December 2017, the Directors are paid the following annual fee and meeting allowance of RM1,000.00 for each Board or Board Committee meeting that they have attended: Kenanga Investment Bank Berhad 44 corporate governance overview statement