The Board of Directors of Bank Islam Malaysia Berhad (Bank Islam, the Bank or the Group) is resolute in its belief that good corporate governance (CG) enables the Group to operate efficiently, mitigate risks, facilitate oversight of business, management and operations of the Group and more importantly, improve access to capital. Bank Islam’s CG practices for the financial year ended 31 December 2024 (FY2024) are based on the three (3) key CG principles set out in the Malaysian Code on Corporate Governance (MCCG): The Board has agreed that the departure from the above Practice 8.2 and Practice 8.3 – Step Up, will be addressed as follows: a. An explanation for the departure. b. Disclosure of alternative practice adopted and how the alternative practice achieves the Intended Outcome. c. Actions which Bank Islam has taken or intends to take. d. The timeframe required to achieve application of the prescribed Practice. Practice 8.2 and Practice 8.3 – Step Up The Board has agreed not to disclose, on a named basis, the top five (5) key Senior Management’s remuneration components including salary, bonus, benefits-in-kind and other emoluments in bands of RM50,000. The Board believes that disclosure of these key executives’ remuneration is neither to Bank Islam’s advantage nor in its business interests given the sensitive nature of such information and the fierce competition for talent in the banking industry. As an alternative to the recommended practice, the Board has opted to disclose a qualitative and quantitative disclosure of the Bank’s remuneration framework for Senior Management Team (SMT) and Material Risk Takers (MRTs) as highlighted in page 229. CORPORATE GOVERNANCE FRAMEWORK Bank Islam’s CG framework is primarily based on the following statutory provisions, regulatory requirements, policies and guidelines and best practices: 1. Companies Act 2016 (CA 2016). 2. Main Market Listing Requirements (MMLR) of Bursa Malaysia Securities Berhad (Bursa Securities). 3. Bank Negara Malaysia‘s Corporate Governance Policy (BNM CG Policy). 4. Malaysian Code on Corporate Governance (MCCG) issued by the Securities Commission of Malaysia (SC). 5. Corporate Governance Guide 3rd Edition (CG Guide) published by Bursa Securities. Board leadership and effectiveness Effective audit and risk management Integrity in corporate reporting and meaningful relationship with stakeholders This Corporate Governance Overview Statement (CGOS) is prepared in accordance with the Bursa Malaysia Securities Berhad’s Main Market Listing Requirements. It is to be read together with the CG Report 2024 of Bank Islam which is available on the Bank’s website at www.bankislam.com. ADOPTION OF THE MCCG The Group has benchmarked its practices against the relevant promulgations and other best practices. Bank Islam has applied the Principles encapsulated in the MCCG for FY2024 except for the following Practices: a. Practice 8.2 – The board discloses on a named basis the top five (5) management’s remuneration component including salary, bonus, benefits in-kind and other emoluments in bands of RM50,000; and b. Practice 8.3 – Step Up: Companies are encouraged to fully disclose the detailed remuneration of each member of management on a named basis. Principle Principle Principle A B C Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2024 212 Corporate Governance Overview Statement
RkJQdWJsaXNoZXIy NDgzMzc=