Director Remuneration Policy

1. Objective

Mikro MSC Berhad (“Mikro”) is committed to remunerating its directors in a manner that is market competitive, consistent with best practice and supports the interests of shareholders. Mikro aims to align the interests of the non-executive directors with those of shareholders by remunerating senior executives through performance and long term incentive plans in addition to their fixed remuneration.

2. Remuneration Components for Managing Director and Executive Directors

The fixed salary is determined according to:

i) The scope of the duty and responsibilities;

ii) The conditions and experiences required;

iii) The ethical values, internal balances and strategic targets of the Company;

iv) The corporate and individual performance; and

v) Current market rate within the industry and in comparable companies.

Bonus:

The bonus in the case of MD and EDs is designed to reward outstanding performance. The bonus is granted to reflect the MD and Executive Directors’ performance as well as Group results.

3. Remuneration for Non-Executive Directors

The fixed fee is determined according to:

i) On par with the rest of the market;

ii) Reflect the qualifications and contribution required in view of the Group’s complexity;

iii) The extent of the duty and responsibilities; and

iv) The number of Board meetings.

4. Other Benefits and Allowances

The benefits and allowances which should be decided by the Board as a whole include:

i) Meeting allowance;

ii) Expenses incurred in the course of their duties as Directors;

iii) Employees Share Option Scheme (“ESOS”) and

iv) Benefit in kind such as motor vehicle, petrol, driver, medical benefits, use of mobile phone and accommodation.

5. Policy Review

The Remuneration Committee will review the Policy periodically to ensure that it continues to remain relevant and appropriate.