KENANGA ANNUAL REPORT 2018

56 KENANGA INVESTMENT BANK BERHAD Brief details on the number of options granted, exercised, forfeited and outstanding during the Financial Year Ended 31 December 2018 are set out below. ESOS (1) Total GMD (2) Senior Management Other Entitled Employees Granted 59,423,000 10,000,000 (3) 16,580,000 (3) 32,843,000 (3) Exercised 194,400 0 0 194,400 Forfeited (4) 1,479,000 0 0 1,479,000 Outstanding 57,749,600 10,000,000 16,580,000 31,169,600 Notes (1) The ESOS is offered to eligible employees and Executive Directors of KIBB and its non-dormant subsidiary companies who are entitled to participate in the ESOS (2) The GMD is not a Director of KIBB. None of the Directors of KIBB is entitled to participate in the ESOS (3) The offer to the GMD was granted on 31 May 2018 while the offer to Senior Management and Other Entitled Employees was granted on 2 January 2018 (4) The ESOS forfeiture is due to staff resignation CORPORATE GOVERNANCE OVERVIEW STATEMENT Maximum Allowable Allocation of the Scheme The aggregate maximum number of KIBB shares that may be offered to an Eligible Person under the Scheme shall be determined at the sole and absolute discretion of the ESS Committee after taking into consideration, amongst others, the provisions of the MMLR of Bursa Securities or other applicable regulatory requirements prevailing during the option period relating to employees’ and/ or directors’ share issuance schemes and after taking into consideration the performance, targets, position, annual appraised performance, seniority and length of service of the Eligible Person or such other matters which the ESS Committee may in its sole and absolute discretion deem fit and subject to the following: a. The aggregate maximum number of KIBB shares which may be made available under the Scheme shall not in aggregate exceed 10% of the issued share capital of the Company (excluding treasury shares) (“ ESS Shares ”) at any point in time during the duration of the Scheme (“ Maximum ESS Shares ”); and b. Not more than 10% of the aggregate number of KIBB shares to be issued under the Scheme shall be allocated to any individual Eligible Person who, either singly or collectively through persons connected with the Eligible Person, holds 20% or more of the issued share capital of KIBB (excluding treasury shares, if any). With regard to the ESS granted to the GMD and Senior Management during the Financial Year Ended 31 December 2018 and since the commencement of the ESS: a. The aggregate maximum allocation is 44% of the Maximum ESS Shares; and b. The actual percentage of the ESS Shares granted to them as at 31 December 2018 was 38% of the Maximum ESS Shares. This Corporate Governance Overview Statement is made in accordance with a resolution of the Board of Directors dated 28 February 2019. IZLAN IZHAB Chairman of the Board