Nomination of the CEO/President and Succession Planning The Board of Directors tasks the Nomination and Remuneration Committee with nominating qualified and capable individuals for the top management position (CEO/ President) for the Board to consider for appointment. The CEO/President of the company also serves as a director on the Board in accordance with the company’s regulations and as required by legal procedures. The candidate must possess the necessary experience, knowledge and a profound understanding of the petroleum and petrochemical businesses, in addition to good reputation, leadership, and a track record for corporate governance compliance. Candidates for senior positions at the executive vice president level must be subjected to scrutiny of the Nomination and Remuneration Committee and approval of the Board as well. CEO Succession Planning According to the company’s Succession Plan Management, executives at the level of Executive Vice President will be selected according to specified criteria and join the Group’s executive development program. Then they will be admitted to leadership evaluation process conducted by a leading consulting firm. The results of the evaluation will be used to develop the potential of senior executives according to the system before are considered for nomination and appointment to senior management under the company’s regulations. Executive Succession Planning and Development The Board of Directors assigns the Nomination and Remuneration Committee to scrutinize succession planning for senior executives at the N-1, N-2 levels to ensure readiness in nominating candidates for key executive positions in an efficient manner. This is also part of risk management to ensure the company has a pool of talents from which to choose for promotion to key executive positions or in the event of major changes in the future. Such succession planning also ensures that senior executives with great potential can grow in their career path along with the company. IRPC has a systematic executive succession plan in place and the Nomination and Remuneration Committee is kept up-to-date with periodic reporting on progress status. Succession planning refers to continuous process of evaluation and development to unlock the full potential of senior executive officers and get them ready to take on challenges of achieving strategic objectives and long-term goals of the company. This process consists of procedural steps as follows: 1) Create Succession Planning chart 2) Determine key elements of Criticality of Target Role 3) Prioritize Target Group 4) Develop Succession Readiness 5) Select Successor Candidate 2. Director and Executive Development IRPC has established a continuous process for director and executive development. In 2023, the company implemented the following actions: Director Orientation In order for newly appointed directors to gain knowledge and understanding of the company’s businesses and their role and responsibilities in accordance with the law and internationally accepted corporate governance standards, IRPC provided an orientation, led by the CEO and President, who always makes himself available to give an introductory briefing, and handed out information regarding organizational overview, rules and regulations, and various handbooks. In 2023, four new directors attended the orientation, namely (1) Mr. Somchai Rangsithananon, (2) Mr. Phonchai Theerawet, (3) M.D. Korn Pongjittham, and (4) Mrs. Pranot Tirasai. 253 Report on Key Corporate Governance Activities 56-1 ONE REPORT 2023
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