AND TOP MANAGEMENT REMUNERATION The compensation structure for the Executive Director is designed to correlate rewards with both corporate and individual performance. It encompasses salary, allowances, bonuses, and customary benefits aligned with industry standards. A significant part of the Executive Director’s compensation is variable and contingent upon annual performance against individual KPIs embedded in a scorecard aligned with Board-approved corporate objectives. Notably, the Executive Director abstains from participating in discussions and voting on his remuneration during Board meetings. The BNRC conducts an annual review of the Executive Director’s performance, submitting informed views and recommendations to the Board regarding potential adjustments in remuneration or rewards, reflecting the Executive Director’s contributions to the Group’s achievements for the year. One on one interviews with Board of Directors to obtain insights on Boardeffectiveness Board of Directors Interviews Desktop analysis of the Board and Committees charters, meeting frequency and agenda and relevant Corporate Governance reports Board Processes Review Desktop analysis and assessment of Board composition (social and professional diversity) and setup (structure & composition) benchmarked against peer group Diversity and Board Composition Review Board members complete an online assessment of individual professional styles; also to help assess balance of profiles across the full Board Stewardship Style Assessment Completion of Board and management questionnaire Board Assessment Questionnaire Presentation to the BNRC and Board with key findings on strengths and gaps - with potential suggestion for enhancement Action Planning Workshop This year’s process TENAGA NASIONAL BERHAD Integrated Annual Report 2023 162 TNB places a strong emphasis on a performance-driven culture, where the remuneration policy aims to compensate competitively for sustained performance, aligning with shareholders’ interests. The Company, in adherence to