CORPORATE GOVERNANCE TOWARDS SUSTAINABLE DEVELOPMENT

 

GRI 100: UNIVERSAL STANDARDS


SSI believes good corporate governance represents one of the most important factors ensuring corporate sustainable development. SSI’s governance function is built and gradually fine-tuned based on the best practices of corporate governance in the region and the world such as the ASEAN Corporate Governance Scorecard, which is coupled with strict compliance with Vietnam’s regulatory provisions on the governance of public companies. Risk management and compliance are also emphasized, creating a unified and consistent management mechanism to monitor and regulate the business operations in a professional, transparent and effective manner. In 2018, SSI made great efforts to approach corporate governance to the best standards in the region. In benchmarking against the evaluation criteria at The ASEAN Corporate Governance Scorecard, SSI has improved its corporate governance, gradually converging good standards in the region, especially for 4 dimensions, namely: Shareholders’ rights, Equitable Treatment of Shareholders, Role of Stakeholders and Disclosure and Transparency. After Decree 71/2017/ND-CP and Circular 95/2017/TT-BTC guiding corporate governance were issued, SSI actively developed the Internal Regulation on Corporate Governance and submitted it to the GSM for approval and made publicly available in April 2018. This regulation is referenced against international practices on corporate governance, in which there is a detailed regulation of shareholders’ rights, equitable treatment of shareholders in activities, and issues related to members/activities of the BOD/BOS. 

 
MANAGEMENT MODEL FOR SUSTAINABLE DEVELOPMENT

 

The BOD holds the highest responsibility regarding SSI’s sustainable development strategy. The Chief Executive Officer and the Board of Management are responsible for building and implementing goals and plans, as well as sharing and ensuring that all sustainable development initiatives are understood and adopted throughout the Company, from business units and departments to each and every employee.

 

 

 

REMUNERATION AND BENEFITS FOR BOARD OF DIRECTORS AND SUPERVISORY BOARD
 
2018 operation fund for BOD and BOS was VND 3 billion, which was approved by the GSM and in accordance with GSM’s Resolution 02/2018/NQ-ĐHĐCĐ dated 20 April 2018.


At 31/12/2018, the BOD comprised of 06 members, of which 02 are executive members, 04 are non-executive members. The BOS comprised 03 members, in which Ms. Le Cam Binh is internal person, who was appointed on 20 April 2018. 

 

 

Periodic bonus and welfare of members of the BOD and SB 


The BOD executive members, BOD members who participated in Company’s operation, and BOS members received periodic bonus and welfare from the Company welfare fund, which was created from retained earnings and based on 2018 business performance approved by the GSM.     

 

Other benefits for members of the Board of Directors and Board of Supervisors 


Currently, the Company’ business expenses benefits (including those relating to the use of company cars, telephones, social, medical and other insurance, the annual health check) and other benefits in internal policies are only applicable to the executive member of BOD or the member who participated in Company’s operation activities. The Company only pays expense related to business trip (if any) to other members of BOD and member of BOS.

  
ESOP for Members of BOD and BOS


In 2018, SSI has successfully issued shares under the Employee Stock Ownership Plan (ESOP), which aims to align the interests of employees and the Company; attract, maintain and motivate qualified staff to dedicate and make long-term commitment to the Company. 


The number ESOP shares bought by BOD and BOS members are as follow:

 

 

Total income of members of BOD and SB in 2018 was VND 13,126,800,000.