1. INTRODUCTION

On behalf of our Board of Directors (“Board”), Affin wishes to announce that we are implementing a reward scheme for the key senior management of Affin and its wholly owned subsidiaries (“Group”) (“Key Senior Management”) as described below.

2. DETAILS OF THE REWARD SCHEME

The Reward Scheme involves the payment of a portion of the discretionary performance bonus (“Bonus”) for the Key Senior Management for the financial year ended 31 December 2021 and future financial years, in the form of existing ordinary shares of Affin (“Affin Shares”). The Affin Shares will be purchased from the open market on Bursa Malaysia Securities Berhad (“Bursa Securities”) and will be held in an omnibus share trading account and vested accordingly to the Key Senior Management upon the meeting of the terms and conditions of the Bonus. These terms and conditions are based on the Key Senior Management meeting the key performance indicators related to financial and business targets as well as risk management and regulatory compliance requirements. The Key Senior Management comprises members of the senior management team under the category of principal officers, material risk takers and other material risk takers.

The Reward Scheme does not involve any issuance of new Affin Shares.

3. RATIONALE

The implementation of the Reward Scheme primarily serves to align the interests of the Key Senior Management with that of our share price performance given the higher correlation of their roles and functions to the successful implementation of our corporate goals and strategies. It will also will provide them with an opportunity to have equity participation in our Company and help our Group to achieve the objectives as set out below:

(i) to recognise the contribution of the Key Senior Management whose services are valued and considered vital to the past and future growth of our Group;

(ii) to reward the Key Senior Management by allowing them to participate in our Group's profitability and eventually realise any capital gains arising from appreciation in the value of the Affin Shares;

(iii) to motivate the Key Senior Management and promote higher performance through greater productivity and loyalty within our Group;

(iv) to inculcate a greater sense of belonging and dedication as the Key Senior Management are given the opportunity to participate directly in our equity, thereby promoting a shared vision amongst the stakeholders to further enhance shareholders value and future growth of the Group;

(v) to possibly retain the Key Senior Management, hence ensuring that the loss of key personnel is kept to a minimum level; and

(vi) to realign the remuneration of Key Senior Management with that of shareholder value creation, our share price performance and future growth of our Group.

4. FINANCIAL EFFECTS

There is no effect on the issued share capital, net assets, gearing, earnings per share and substantial shareholdings of Affin as the Reward Scheme does not involve any issuance of new Affin Shares.The cost of purchasing Affin Shares under the Reward Scheme will be funded from the Bonus.

Affin does not have any convertible securities.

5. APPROVALS REQUIRED

The Reward Scheme does not require any approval from our shareholders or regulators.

6. INTEREST OF DIRECTORS, MAJOR SHAREHOLDERS, CHIEF EXECUTIVE AND PERSONS CONNECTED

Our President and Chief Executive Officer, Datuk Wan Razly Abdullah bin Wan Ali is entitled to participate in the Reward Scheme in his current capacity. He is therefore deemed interested in the Reward Scheme to the extent of his allocation, as well as allocations to persons connected to him, if any.

As at the date of this announcement, Datuk Wan Razly Abdullah bin Wan Ali does not hold any Affin Shares either directly or indirectly.

Save as disclosed above, none of our other Directors, major shareholders and Chief Executive and/ or persons connected to them have any interest, direct or indirect, in the Reward Scheme.

7. DIRECTORS’ STATEMENT

Our Board, having considered all aspects of the Reward Scheme. including but not limited to the rationale and justifications and effects, is of the opinion that the Reward Scheme is in our best interests.

8. TIMEFRAME FOR COMPLETION/IMPLEMENTATION

The Reward Scheme will be implemented following the date of this announcement.

This announcement is dated 1 April 2022.

Announcement Info