Human Capital and Remuneration

As part of our attraction and retention strategy, we have adopted a performance based rewards philosophy. Our rewards programme is designed to support individual excellence, productivity improvement and contribution towards the achievement of organisation objectives. The reward framework is made up of three components consisting of base pay, short-term incentives (STI) such as performance bonus and merit increments, and long-term incentives (LTI) such as employee share options. It is linked to the organisation's values and performance expectations through the Corporate Balanced Scorecard (CBS).

Bursa Malaysia's pay philosophy is positioned at the market 50th percentile for total pay, and at the 75th percentile for high or outstanding performers. The pay structure is reviewed at appropriate intervals to ensure that it is market competitive. A study of Bursa Malaysia's base and variable pay structure for executives was conducted in 2008.

Performance management is a continuous process to evaluate, manage and improve the employees' performance. Performance assessments are conducted by the managers, and input from managers in other areas/ divisions and project team members are gathered to get a broad picture about an employee's performance and competency level.

The Exchange recognises that performance management is key to driving excellence within an organisation. As such, in 2008, performance management was identified as one of the five key transformation initiatives supporting the drive for operational excellence. The initial emphasis of the transformation plan for performance management was the roles and responsibilities of line managers in building a culture of performance. In this regard, compulsory workshops were organised for all immediate supervisors to equip them with the necessary knowledge and skills to close gaps identified within various stages in the performance management cycle. For 2009, the emphasis will be on reinforcement and assessment of the effectiveness of performance management and its related processes.

Promoting excellence entails significant investment in developing and enhancing skills and knowledge of employees. In 2008, the focus on people development took the approach of a curriculum style structure. This method provides for a more comprehensive learning and development approach in which both employee and supervisor are able to identify training needs and encourage efforts of learning more effectively.

Bursa Malaysia views succession management as a critical strategic tool for attracting and retaining talent. Succession management enables Bursa Malaysia to ensure that the right people are moving into the right jobs at the right time, and that gaps are being spotted early on. The Performance Management System and 360-degree feedback, the Hogan personality assessment and the Hogan Business Reasoning Inventory ("HBRI") are linked throughout the succession management process and are tools used to place employees into development plans. With this information, both the individuals and their respective supervisors are able to conduct better coaching dialogues that chart their progress throughout the year.