Manulife US REIT - Sustainability Report 2017

Remuneration Policy The Manager’s compensation programme is intended to be well-balanced, competitive, performance based and aligned with the achievement of each employee’s short, medium and long-term goals. While the approach reflects a pay-for performance culture, it is also designed to attract, motivate and retain high-performing and high-potential employees in their respective field of expertise. Employees are also incentivised through annual bonus awards that are tied to a variety of financial and non-financial measures and key staff are eligible for a Long-Term Incentive Scheme. All aspects of compensation are reviewed against independent market surveys on a regular basis so that the REIT maintains its attractiveness as a choice employer and attracts the best talent. Training, Education and Leadership The Manager is aligned to the Training and Development Policy within Manulife Group that is made available in the employee handbook. Employees are required to attend mandatory and voluntary training programmes to cultivate technical skills, leadership, strategic planning, creative thinking and problem solving skills. In 2017, employees also attended additional courses provided by third party vendors, organisations and institutions, such as Bloomberg, Yardi (accounting), Institute of Singapore Chartered Accountants, Singapore Association of the Institute of Chartered Secretaries and Administrators and the Singapore Red Cross Academy. The Manager supports the youth and contributes to the talent pool by providing undergraduates and fresh graduates with internship opportunities. Through such programmes, interns gained invaluable skill sets and experiences that they can apply in their future careers. Key executives also conducted a ‘live’ investor meeting where they shared MUST’s financial results and strategy, to a group of final year real estate students from National University of Singapore (NUS). In addition, the CEO shared with the postgraduates from NUS on the challenges and opportunities in the financial market place. In FY2017, the key executives gathered regularly to discuss and brainstorm strategies for the REIT. During these sessions, pertinent issues such as challenges in the market, performance of the portfolio and human capital were discussed. “Work Life Coaching” is provided to all employees who participate in a semi-annual performance and career review where they are given feedback and opportunities to build on their past performance. These sessions aim to identify employees’ skill gaps and provide additional training when required. The Manager believes in two-way communication with its staff and encourages employees to offer feedback on their career goals and all other aspects of their work during these sessions. At any time, staff including their immediate family members with personal issues are able to receive professional advice from external consultants through phones, emails or face-to-face sessions. In addition, employees are required to complete several mandatory training programmes to ensure good compliance and governance. These include the Code of Business Conduct and Ethics Training and Certification, Investment Division Annual Associate Compliance Anti-Money Laundering and Anti-Terrorist Financing Training, New Information Classification Standard and New Information Protection Training. In FY2017, the average training hours per employee was 31.2 hours, almost double the training hours per employee a year ago. Talent Retention Targets • Out of the 12 full-time employees, one resigned • Maintain or increase the number of full-time employees • 100% of employees completed the Employee Engagement Survey • Maintain employees’ participation Training Hours Target • Average training hours per employee was 31.2 hours • Maintain or improve average training hours per employee FY2017 Performance and Targets FY2017 Performance and Target SustainAbility Report 62 Manulife US REIT