Page 160 - Bank-Muamalat_Annual-Report-2023

BANK MUAMALAT MALAYSIA BERHAD

GOVERNANCE
DISCLOSURE

REMUNERATION FOR SENIOR MANAGEMENT AND GOVERNANCE
MATERIAL RISK TAKERS
Board Oversight
The Remuneration Policy for Senior Management and
Material Risk Takers (MRTs) constitutes the foundation of Bank The Board of Directors shall assume responsibility for
Muamalat’s overarching risk management framework. overseeing the Remuneration Policy, ensuring its adherence
Acknowledging the pivotal role of attracting, retaining, to regulatory mandates and alignment with Bank Muamalat’s
and incentivising top-tier talent in achieving organisational strategic direction and long-term interest.
objectives, Bank Muamalat is committed to maintaining a
remuneration structure that harmonises with its risk appetite Remuneration Committee
and fosters a culture of prudent risk management.
Entrusted with the pivotal role of scrutinising and endorsing
remuneration packages for senior management and MRTs, the
The primary objective of this policy is to outline the guiding
Remuneration Committee shall ensure compliance with policy
principles, governance framework, and procedural mechanisms
tenets, regulatory requisites, and industry benchmarks.
that Bank Muamalat will adhere to in determining the
remuneration packages of its senior management and MRTs.
Independent Review
These endeavors are directed toward ensuring regulatory
compliance and aligning with industry best practices. Bank Muamalat shall periodically subject its remuneration
practices to independent scrutiny by external experts,
affirming their continued alignment with policy imperatives and
PRINCIPLES
regulatory mandates.
Equitability
PROCEDURES
Bank Muamalat shall uphold transparency, equity, and
non-discrimination in its remuneration structure, consonant
Performance Assessment
with prevailing market/industry norms.
A comprehensive performance evaluation, encompassing
Performance-based
both quantitative and qualitative measures, shall underpin
remuneration decisions, ensuring objectivity and consistency
The remuneration framework shall be intricately tied to
performance metrics encompassing both financial and across all operational domains.
non-financial parameters, reflective of Bank Muamalat’s Remuneration Mix
strategic imperatives and enduring values.
The remuneration structure shall strike a balance between fixed
Risk alignment
and variable components, with variable pay subject to deferral
and contingent upon performance, thereby aligning with Bank
Remuneration arrangements shall be congruent with Bank
Muamalat’s risk posture and nurturing a culture of prudential
Muamalat’s risk tolerance levels, fostering a culture that
risk-taking.
discourages undue risk-taking and underscores prudent risk
management practices.
Clawback and Malus
Sustainability
Inclusion of clawback and malus provisions within
remuneration agreements shall empower Bank Muamalat
Embracing a long-term outlook, remuneration schemes
shall be crafted to resonate with Bank Muamalat’s enduring to recoup variable pay in instances of misconduct,
interests and stakeholders’ expectations, while adhering to underperformance, or material risk events, reinforcing
principles of corporate social responsibility and environmental accountability among senior management and MRTs.
sustainability.
Disclosure
Bank Muamalat shall uphold transparency and accountability
to stakeholders by disclosing pertinent details regarding
remuneration practices for senior management and MRTs
in its annual report, encompassing remuneration structures,
performance criteria, and the link between remuneration and
risk.

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