Mr Seah Yam Meng may have misunderstood the structure of the Team-Based Reliability Incentive scheme that will be rolled out ("Better to penalise SMRT top brass for service lapses"; yesterday).

We assure him that this scheme does not include a penalty component.

Instead, it seeks to incentivise staff at all levels to excel in their work as a team, by paying bonuses when targets are met or exceeded.

Senior management's bonuses have been, and continue to be, tied to a range of key performance indicators which are important to our stakeholders.

These key performance indicators include operational performance and reliability of our public transport service, customer experience, and the quality and strength of our workforce.

Also, for senior management, a significantly larger portion of their pay is paid as variable performance-based bonuses, as compared with the rest of the workforce at SMRT.

This is consistent with best practices in the industry for compensation and remuneration.

Patrick Nathan

Vice-President

Corporate Information and Communications

SMRT Corporation