All employees are subject to annual appraisal exercise. There are two key aspects of employee appraisal:

　　1. review of past performance against previously-set performance goals;

　　2. Setting of new performance goals and development objectives.

　　For the first part, it will be used to determine performance-driven remuneration, including cash bonus, performance shares and stock options. Generally, performance shares and stock options are applicable to more senior employees, such as vice presidents and managing directors.

　　In the second part, employee will discuss with the manager in setting new performance goals, training and development needs.

　　¡öMost of the global financial institutions adopt comprehensive appraisal systems involving assessments by subordinates, peer group and superiors, commonly known as 360 degrees appraisal system.

　　¡öSome of the global financial institutions have defined Key Performance Indicators(KPI) at the corporate level. It cascades from business unit, location and right down to the individual level. This is an extremely important discipline as it helps individual employees to establish measurable objective that is consistent with the overall corporate performance targets.