Remuneration Committee Report

Composition

The Board-appointed Remuneration Committee as at end of the year comprises following members. The Chairman of the Committee is a Non-Executive Director and the others are Non-Executive Independent Directors.

Mr. S R Abeynayake - Chairman (Non-Executive Director)
Mr. Razik Mohemed (Non-Executive Independent Director)
Dr. Ajantha Dharmasiri (Non-Executive Independent Director)

Company Remuneration Policy

Company’s remuneration policy aims to recruit, retain and motivate high calibre personnel at Board and Executive levels who possess appropriate professional, managerial and operational expertise required to achieve Company’s short-term and long-term objectives. The remuneration policy attempts to guarantee that the total remuneration package is sufficiently competitive to attract the best spirit for the Company.

The Company’s remuneration framework has been designed, incorporating the newly developed Human Resource Information System to enhance value for stakeholders of CDB as well as to align the inspiration of the executives with the short and long-term interests of the Company. In designing competitive compensation packages, the policy is to appreciate and reward high performers while consciously balancing the short-term performance with medium to long-term commitment to the Company.

Purpose

Remuneration Committee recommends adoption of a market-oriented remuneration policy for its staff and ensure the selection of the best talent and create incentives for staff for their performance and loyalty. The Committee also reviews the recruitment, evaluation of employee performance, incentive schemes, bonus policy of the Company, rewarding and promotions policy of the Senior Management and Executive Officers of the Company. The succession plan policy in place and its effectiveness is critically evaluated by the Committee. The Committee evaluates the performance of the CEO and Key Management Personnel against pre-determined set targets and goals to determine the basis for recommending the basis for rewarding, increments and other benefits.

It considers such other matters relating to remuneration policies or practices as the Board, may from time to time bring to its attention of the Committee.

Further the Committee consciously evaluates the appropriateness of the current remuneration policy adopted by the Company for its suitability and appropriateness.

Meetings

The Committee met once during the year ended
31st March 2014.

(Sgd.)
S R Abeynayake
Chairman
Remuneration Committee

2nd June 2014

Colombo