Chief executives at 13 STI companies receive higher remuneration in 2021

Singapore

CHIEF executives at 13 of the Straits Times Index (STI) component companies saw an increase in their remuneration for FY2021. That number represented more than half of the 21 stocks with a financial year that ended in Dec 31.

Data compiled by The Business Times showed the total remuneration for all 21 companies declined slightly to S$194.3 million from S$203.4 million in FY2020. But this was largely due to a decline in the pay packages of directors at Jardine Matheson Holdings J36, which reports a lump sum payment to all its directors, and the reported pay package of Genting Singapore's G13 CEO.

All US dollar-denominated figures were converted to Singapore dollars as of Apr 11, 2021. For companies that reported compensation within a range, the midpoint was taken.

The largest decline reported was for Genting Singapore's CEO Lim Kok Thay, whose FY2020 disclosed remuneration in the annual report had included a S$35 million bonus if the group successfully bid for a Japan integrated resort. The group has since shuttered its Japanese subsidiary, after Yokohama in September 2021 cancelled plans for an integrated resort.

In response to queries by Singapore Exchange about Mr Lim's remuneration in FY2020, the company said that he had received less than S$5 million, which was more than a 50 per cent reduction over the previous year.

The largest increase was for CapitaLand Investment's (CLI) 9CI group CEO Lee Chee Koon - who saw a rise in total compensation to S$7.0 million, 81.5 per cent higher than the S$3.87 million he made in FY2020. This figure included compensation he received before the restructuring of the previously listed CapitaLand group. For the period since CLI was listed, he earned S$1,983,268 (see clarification note).

In August 2021, the real estate group underwent a restructuring to privatise its development arm and list its fund-management and property-investment business. CLI recorded a net profit of S$1.35 billion, reversing a loss of S$559 million in FY2020.

City Development (CDL) C09 group CEO Sherman Kwek, also saw a significant rise in remuneration by 69.8 per cent to S$1.7 million in FY2021. The fixed salary and variable bonuses he received made up 45 per cent of his remuneration each, while board fees and other benefits made up 7 per cent and 3 per cent, respectively.

This comes after Kwek saw the biggest cut to his total compensation, at 64.2 per cent, among STI companies a year earlier. CDL booked net profits of S$97.7 million in FY2021, reversing a loss of S$1.9 billion in FY2020.

At most companies, pay increases came hand in hand with improved profitability. At least 8 companies on the list raised the pay of their chief executives above even FY2019 levels.

William Tay, CEO of Ascendas Reit's A17U manager, saw his remuneration band rise by S$250,000 from FY2019 - to between S$1,250,000 and S$1,500,000.

This comes as the real estate investment trust's (Reit) total amount available for distribution to unitholders for the year rose to S$630 million, up 17 per cent year on year and 29.7 per cent from FY2019 figures.

DBS D05 and UOB U11 saw their chief executives' remuneration rise above 2019 levels as well.

DBS CEO Piyush Gupta received S$13.6 million in remuneration, up from S$12.1 million in FY2019. UOB CEO Wee Ee Cheong received S$10.9 million, slightly above the S$10.8 million reported in FY2019. OCBC's O39 CEO Helen Wong's remuneration could not be compared as she was newly appointed in April last year.

In FY2021, all 3 banks posted strong net profit growth. OCBC's profit rose 35 per cent; UOB, 40 per cent; and DBS, 44 per cent.

Kuok Khoon Hong, CEO of agribusiness giant Wilmar International F34 , received remuneration of S$11.6 million in FY2021, up 56.8 per cent from S$7.4 million in FY2019.

This came on the back of strong earnings growth in FY2021 - Wilmar recorded net profit of S$1.89 billion for the full year, up 46.2 per cent from S$1.29 billion in FY2019.

Meanwhile, electronics manufacturing services provider Venture Corporation's V03 former CEO Wong Ngit Liong saw his pay cheque shrink 8.7 per cent to S$7.5 million despite a 5 per cent increase in the company's full-year net profit to S$312.1 million.

Former chief operating officer Lee Ghai Keen replaced Wong on Jan 1, 2022 as CEO. Wong remains chairman of the company.

Clarification note: In an earlier version of the article, we wrote that CLI CEO Lee Chee Koon earned S$1,983,268 in FY2021. CLI has since clarified that this figure was for the period between Sep 20, 2021 and Dec 31, 2021 after the company was restructured. For the full year, Lee's received a remuneration of S$7,014,354.

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