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Individual Performance Multiplier
The individual performance rating of all Executive Directors as well as Executive Officers was assessed based on
individual performance measures, derived from the Corporate Scorecard objectives. Each individual rating equates
to a numerical value for the Individual Performance Multiplier.
The personal assessment of the CFO is conducted by the CEO and the rating is approved by the RemCo. The personal
assessment of the CEO is conducted by the Executive Chairman and the rating is approved by the RemCo. The
personal assessment of the Executive Chairman is conducted by the RemCo.
Overall STIP Outcome
The outcome of the 2015 score was 68.6% which equates to a Company Multiplier of 0.7325.
Despite achieving the minimum threshold required to qualify for a STIP bonus in 2015, the Company has taken into
consideration the current industry climate and decided not to pay bonuses for 2015. For 2014, the total STIP bonus
paid to employees was $4.89 million.
Pension
Kuwait Energy does not operate any pension schemes, in line with Kuwait practice.
Exit Payments Policy and Service Contracts
Kuwait Energy’s policy is to limit severance payments on termination to pre-established contractual arrangements. In
the event that the employment of an Executive Director is terminated, any compensation payable will be determined
in accordance with the terms of the service contract between the Company and the employee, as well as the rules
of any incentive plans.
Non-Executive Directors
Non-Executive Directors are appointed by the Board on the recommendation of the Nomination Committee and
their current contracts are for one year. The period of appointment may be extended upon the recommendation of
the Nomination Committee and the approval of the shareholders of the Company at a general meeting.
Non-Executive Directors do not have service contracts, and do not participate in the Company’s incentive schemes.
They have letters of appointments which can be terminated by either party on one month’s notice.
Non-Executive Directors are paid a fee that is approved by Executive Directors on the recommendation of the
Executive Chairman. Currently, their annual fee is US$60,000 per annum for Board membership. In addition to this,
the Senior Independent Director is paid an additional US$10,000 per annum and for each committee Chairmanship
an additional US$10,000 per annum is paid.
The Non-Executive Directors are also entitled to receive reimbursement for reasonable expenses incurred in fulfilling
their role, or a per diem for local travel and accommodation costs when attending Board meetings.
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