SINGAPORE (June 17): For all their market heft, Singapore’s government-linked companies (GLCs) seem to have exercised restraint when compensating their CEOs.
While Loh Chin Hua of Keppel Corp helped improve the conglomerate’s earnings by 381.5% in FY2018 from the year before, his compensation for last year was up just 0.8% to $6.7 million. To be sure, the group’s stellar performance was due largely to the 44% increase in earnings at its property business, driven by en-bloc sales of developments as well as gains from its divestment of a stake in a Beijing commercial project. Perhaps the board was also still mindful of its rig-building subsidiary’s involvement in a Brazil bribery case that scandalised markets here two years ago.
Singapore Airlines’ Goh Choon Phong helped lift the flag carrier’s profit after tax and minority interest by 147.8% but suffered a cut in compensation of nearly 14%, to $4.3 million. Similarly, the pay of Singapore Telecommunications’ Chua Sock Koong fell 6.9% to $6.1 million even though the telco’s Patmi rose 41.5%, owing largely to one-off divestment gains.
On the other hand, ST Engineering’s Vincent Chong Sy Feng enjoyed a modest increment of 3.9% to $4.6 million, even though the defence and engineering group’s Patmi fell 1.7%. Alexander Charles Hungate of SATS took home 11% more than last year, or $3.3 million. Earnings at the airport services provider were up 1.4%.
Piyush Gupta of DBS, the most valuable listed GLC in terms of market capitalisation, had a 15.6% hike in his compensation package to $11.9 million for 2018. DBS reported a 27.6% gain in earnings in FY2018 from the year before.
CapitaLand’s Lee Chee Koon, who was appointed CEO of the property giant last September, was paid $4.2 million in FY2018. Lee is now overseeing the integration of CapitaLand and Ascendas-Singbridge and his compensation for this year will be a clearer indication of how well he performed.
In contrast to the GLCs, there was a greater variance in the size of compensation packages at listed companies that had a controlling shareholder or family. Among the highest-paid CEOs on Singapore Exchange last year, Handojo Santosa, controlling shareholder of meat producer Japfa, enjoyed the largest pay hike. From just $3.5 million in 2017, Santosa, also known as Kang Kiem Han, took home $9 million in compensation in 2018, 157.1% more than the previous year. This came on the back of the company’s reporting a whopping 7,499.2% leap in earnings to $137 million, as it enjoyed higher margins across its various operating subsidiaries.
Stamford Land’s Ow Chio Kiat received the second-biggest pay increase in percentage terms. His compensation package was $5 million in FY2018, up 66.7% from $3 million in FY2017. The property and hotel group’s earnings rose an almost-corresponding 63.2% over the same period.
Xu Cheng Qiu, executive chairman of China Sunsine Chemical Holdings, received the next highest increase. For FY2018, Xu was paid $12 million, up 63.8% over FY2017. The company’s earnings grew 87.9% over the same period.
Oxley Holding’s Ching Chiat Kwong was also paid $12 million, but the amount was about 24% lower than the year before. The property developer’s earnings were up 30.7% between FY2017 and FY2018.
Overall, Prudential’s Barry Stowe was again the highest-paid CEO of an SGX-listed company in 2018. For lifting the insurer giant’s earnings by 26%, he was given a 7.8% hike in compensation to $16.5 million.
Teo Cher Koon of small-cap engineering firm ISDN Holdings was among the highest-paid CEOs last year. His compensation package of $4 million was a third more than the year before, even though the company’s earnings rose just 15.4% to $10.9 million over the same period. Teo’s pay amounts to more than a third of the company’s earnings, and 4.3% of its market value. In contrast, total shareholders’ returns for FY2018 over FY2017 were down 8.5%.
Lawrence Chiang Kok Sung of Metro Holdings received a 57.4% hike in compensation to $4.7 million. The 30-year veteran of the property development and investment company oversaw a doubling of its earnings between FY2017 and FY2018. Chiang, who served three years as CEO, was replaced by Yip Hoong Mun with effect from June 1.
Dr Tan See Leng of IHH took home $11.9 million in FY2018, 6.7% higher than his FY2017 package. The healthcare group suffered a 35.3% drop in earnings in FY2018 from FY2017. Tan is stepping down by December this year.
