Asti's move to retrench CEO with S$1.4m entitlement questioned
ASTI Holdings' dismissal of its chief executive officer (CEO) Michael Loh Soon Gnee with a S$1.4 million termination entitlement has at least one corporate governance expert questioning the appropriateness of such a move.
In a blog post on Thursday (Dec 23), Mak Yuen Teen, professor of accounting at the NUS Business School, noted Asti's annual report for 2020 declared there are no termination, retirement or post-employment benefits provided for in employment contracts with its directors, CEO or top five key management personnel.
Yet, in a bourse filing on Loh's retrenchment on Wednesday, Asti said Loh is "contractually entitled" to an aggregate of S$2 million as part of his termination, and that the board has decided to pay him some S$1.4 million instead.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
DBS customers unable to log into digibank, PayLah! on Thursday
US: Wall St opens higher after Fed leaves interest rates alone
Japan’s Sumitomo Corp net profit down 32% on Madagascar one-off loss
Moody's tops quarterly profit estimates on strong product demand
Hong Kong regulator brings insider trading charges against Segantii and its founder
Novartis to buy radiology specialist Mariana Oncology for US$1 billion