Investor Presentaiton

MORGAN STANLEY BANK ASIA LIMITED UNAUDITED SUPPLEMENTARY FINANCIAL INFORMATION Year ended 31 December 2020 H. PILLAR 3 DISCLOSURE (CONTINUED) Table REMA: Remuneration policy Governance structure The Board Remuneration and Culture, Values and Conduct Committee appointed by the Board of Directors of the Company assists the Board of Directors in discharging its responsibility for the design and operation of the Company's remuneration system, and makes recommendation in respect of remuneration policy and practices to the Board of Directors. The Board Remuneration and Culture, Values and Conduct Committee comprises of three Board members, two of whom are independent non- executive directors of the Company. No external consultants have been engaged by the Company since the set up of the Board Remuneration and Culture, Values and Conduct Committee. The Board of Directors endorses and issues the remuneration policy for the Company and its branch. The remuneration policy takes into consideration the global practices of the Morgan Stanley Group on remuneration. In addition, local market and competitor practices are also taken into consideration in determining the Company's remuneration policy. Senior management is defined as those persons who are responsible for oversight of the Company's strategy or activities and/or those of the Company's material business lines. Key personnel are defined as individual employees whose duties or activities in the course of their employment involve the assumption of material risk or taking on of material exposures on behalf of the Company. For the year ended 31 December 2020, the Company has 24 senior management and no key personnel. Quantitative information on the remuneration for senior management and key personnel is set out in Templates REM1, REM2 and REM3 below. Four meetings were held by the Board Remuneration and Culture, Values and Conduct Committee during the year ended 31 December 2020. In 2020, the Committee and the Board have approved changes to the Company's Remuneration Policy which only include Bank name change from Morgan Stanley Asia International Limited to Morgan Stanley Bank Asia Limited. For the year ended 31 December 2020, the remuneration paid to the Board Remuneration and Culture, Values and Conduct Committee members in the Morgan Stanley Group was borne by other Morgan Stanley Group undertakings; the remuneration paid to the Board Remuneration and Culture, Values and Conduct Committee members not in the Morgan Stanley Group by the Company was approximately US$113,000. Remuneration structure The Company's remuneration policies and procedures are consistent with those of the Morgan Stanley Group. The Morgan Stanley Group is committed to responsible and effective compensation program, which is continually evaluated with a view towards balancing the following objectives, all of which support shareholders' interests: Deliver Pay for Sustainable Performance The Morgan Stanley Group applies "pay-for-performance" philosophy that pervades its culture and motivates the employees. The Morgan Stanley Group rewards employees by directly linking compensation to performance based on their annual objective setting and annual performance evaluation, taking account of the overall performance of the Company as a whole over the longer term; performance of the relevant business units; contribution of individual employees to the above performance; and outlook of the overall Morgan Stanley Group. Compensation programs for the majority of employees comprised two key elements, including base salary and discretionary compensation which may be payable in cash or partially in cash and partially in deferred compensation awards depending on the level of total compensation, seniority and the role of the employees. 106

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