Tighten budget? FGV directors deserve only half of RM5.7m pay, says key shareholder

Zakaria said the board of directors could still get fees from attending meetings and other perks, but should not ask for similar fees like last year. — Picture by Yusof Mat Isa
Zakaria said the board of directors could still get fees from attending meetings and other perks, but should not ask for similar fees like last year. — Picture by Yusof Mat Isa

KUALA LUMPUR, June 27 — FGV Holdings Bhd’s board of directors should only be paid half of the proposed remuneration fees if they were serious about tightening the budget, key shareholder Koperasi Permodalan Felda (KPF) has said.

The New Straits Times (NST) quoted KPF representative Datuk Zakaria Arshad as saying that it was a reasonable amount, and that it would augur well in showing that the board was serious about helping FGV and being fair to other staff who have not received any bonuses or Hari Raya salaries in advance.

“If the director’s remuneration is cut, it will boost staff morale in light of the recent service termination of senior staff,” he was quoted as saying.

According to FGV’s 2018 annual report, FGV chairman Datuk Wira Azhar Abdul Hamid was paid RM1.95 million last year, and the total remuneration for the board was RM5.74 million.

On Tuesday, during the FGV’s AGM, the company’s three largest shareholders, the Federal Land Development Authority (Felda) with 33.7 per cent stake, Koperasi Permodalan Felda Malaysia Bhd (KPF) (5 per cent) and the Armed Forces Fund Board (LTAT) (1.25 per cent), rejected resolutions on the directors’ pay packages.

But at the same time the shareholders approved all the other resolutions including the re-election of directors.

Zakaria said the board of directors could still get fees from attending meetings and other perks, but should not ask for similar fees like last year.

“As a responsible investor, I think KPF needs to see its money grow. That is our concern,” he added, saying that on their part KPF had been struggling to pay dividends to its 240,000 members.

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