Directors’ remuneration packages purportedly caused FGV Holdings Bhd’s majority shareholders to baulk.
The company’s board of directors received a total of RM5.7 million last year, with non-executive chairman Datuk Wira Azhar Abdul Hamid taking nearly RM2 million or equivalent to twice what other directors received in aggregate, The Edge Market reported on Thursday.
Former chief executive officer Datuk Zakaria Arshad received the second largest amount with RM1.5 million, despite being on garden leave before stepping down from his position last year.
Azhar and Zakaria’s payments were equivalent to 61 per cent of the RM5.74 million proposed board remuneration for the full year of 2018, while Zakaria’s payment alone represented 26.8 per cent of the total payout.
Zakaria’s payment consisted of a director’s fee of RM1.49 million, a bonus of RM206,880, and benefits in kind of RM216,824.45.
Meanwhile, the third to fifth largest earners in the company were Mohd Anwar Yahya with a total of RM305,811, Mohamed Nazeeb P Alithambi with RM287,394, and Mohamed Suffian with RM262,671.98, respectively.
Unhappy with the pay, FGV’s three main shareholders – Federal Land Development Authority (Felda), Koperasi Permodalan Felda Malaysia Bhd (KPF) and the Armed Forces Fund Board (LTAT) – blocked the proposed resolution during a general meeting on June 25 without elaborating details of the vote.
“Zakaria’s pay was at RM1.668 million in [2017] – the highest among all board members – though his bonus at then was lesser, at RM86,912.50, while his director’s fee was at RM1.25 million,” the business weekly reported.
“In [2017], the second highest paid among the board members was its former non-executive chairman, Tan Sri Isa Samad, who took home RM1.48 million. Isa is currently facing criminal breach of trust (CBT) and bribery charges involving over RM3 million,” it added.
When Isa was chairman of FGV, he was also serving in the same position in Felda Investment Corp Sdn Bhd, Felda, as well as in 39 subsidiaries under Felda and FGV.
Meanwhile, among the independent non-executive directors, the highest fee in 2017 was RM120,000 – which was the amount paid to five of the nine independent directors: Datuk Mohamed Suffian Awang, Datuk Dr Salmiah Ahmad, Dr Mohamed Nazeeb P Alithambi, Datuk Mohd Anwar Yahya and Dr Nesadurai Kalanithi.
Formerly Felda Global Ventures Holdings, FGV last year saw a net loss of RM1.08 billion as compared with a net profit of RM130.93 million 2017 year. Revenues also fell to RM13.47 billion from RM16.92 billion.