KENANGA ANNUAL REPORT 2020

61 ANNUAL REPORT 2020 // KENANGA INVESTMENT BANK BERHAD For the Period from 1 January 2020 to 31 December 2020 ESOS (1) Total GMD (2) Senior Management Other Entitled Employees Granted 3,311,000 0 0 3,311,000 (4) Exercised 9,247,100 0 1,161,000 8,086,100 Forfeited 1,731,000 0 450,000 (5) 1,281,000 (6) Cancelled (7) 952,500 0 195,000 757,500 Outstanding 53,767,500 10,000,000 15,329,000 28,438,500 NOTES (1) The ESOS is offered to Eligible Employees. (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 respectively. (4) The offer to Other Entitled Employees and Senior Management was granted on 2 May 2019, 17 June 2019 and 1 July 2020 respectively. (5) ESOS forfeiture in compliance with Section 92 of the FSA. (6) ESOS forfeiture due to staff resignation. (7) ESOS not released/ vested due to vesting conditions not fully met. Maximum Allowable Allocation of the Scheme The aggregate maximum number of KIBB shares that may be offered to Eligible Employees 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 By-Laws of the ESS, MMLR of Bursa Securities or other applicable regulatory requirements prevailing during the option period relating to employees’ and/ or directors’ share issuance schemes, as well as, 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. 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 2020 and since the commencement of the ESS: a. The aggregate maximum allocation is 40% of the Maximum ESS Shares; and b. The actual percentage of the ESS Shares granted to them as at 31 December 2020 was 37.42% of the Maximum ESS Shares. In respect of Financial Year 2020, the External Auditors, EY had reviewed the allocation of the shares under the ESS made to the Eligible Employees and had reported to the AC at its meeting on 24 February 2021, that in its opinion, the allotment of shares made under the ESS was in compliance with the criteria for allocation of shares which had been disclosed to the Eligible Employees. This Corporate Governance Overview Statement is made in accordance with a resolution of the Board of Directors dated 1 April 2021. YAM TAN SRI DATO’ SERI SYED ANWAR JAMALULLAIL Chairman