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Hong Kong Ferry (Holdings) Company Limited Annual Report 2013

Corporate Governance Report (Continued)

BOARD COMMITTEES (Continued)

Remuneration Committee (Continued)

The remuneration of the Directors and senior management

is determined by reference to the skills, knowledge and the tasks assigned and also to the individual performance and

the overall profitability, corporate goals and objectives of

the Company as a whole. In determining the remuneration

package, the Committee will also obtain relevant information

from external source and consider factors such as salaries

paid by comparable companies, time commitment and

responsibilities of the directors, etc.

During the year, one remuneration committee meeting was held. During the meeting, the Remuneration

Committee members reviewed and determined the

remuneration package of the senior management and made

recommendations on the fees of all the directors of the

Company for the financial year ended 31 December 2013.

The summary of the work performed by the Remuneration

Committee during the year ended 31 December 2013

included:

(i)

(ii)

Reviewing the salary level and structure of the staff

and making recommendation to the Board on the

remuneration packages of the Directors and the

senior management for the year 2013; and

To make recommendations to the Board on the

remuneration of all Directors.

Nomination Committee

The Nomination Committee of the Company has been

established with written terms of reference setting out

duties, responsibilities and authorities delegated to them

by the Board. The Nomination Committee comprises two

Executive Directors namely Mr. Lam Ko Yin, Colin (Chairman

of the Nomination Committee) and Mr. Li Ning and three

Independent Non-executive Directors, namely, Mr. Ho Hau

Chong, Norman, Ms. Wong Yu Pok, Marina and Mr. Wu King

Cheong.

The terms of reference of the Nomination Committee setting out its authority, duties and responsibilities are available on the websites of the Company (www.hkf.com) and the Stock

Exchange (www.hkexnews.hk) respectively.

The Nomination Committee is responsible for reviewing

the structure, size and composition (including the skills, knowledge and experience) of the Board at least annually and make recommendations on any proposed changes to the Board to implement the Company's corporate strategy with due regards to the Board Diversity Policy. It also identifies individuals suitably qualified to become Board

members and select or make recommendations to the Board

on the selection of individuals nominated for directorships and to assess the independence of independent

non-executive directors and make recommendations to the

Board on the appointment or re-appointment of directors

and succession planning for directors, in particular the

chairman and the chief executive. The Committee shall

consider the candidate from a wide range of backgrounds, on his/her merits and against objective criteria set out by the

Board and taking into consideration of his/her time devoted

to the position.

During the year, there is no change in the composition of

the Board.

For the year ended 31 December 2013, three nomination

committee meetings were held.

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