SIA paid CEO 14% less in FY2018, reflecting year-before performance

SINGAPORE Airlines (SIA) paid chief executive Goh Choon Phong 14 per cent less in fiscal 2018, reflecting lower bonuses for a lacklustre fiscal 2017 and lower valuations for his share-based compensation, according to the national carrier's latest annual report.

Directors' fees paid by the group also slipped about 1.6 per cent to S$1.91 million, from S$1.95 million the previous year. That decline was partly due to the retirement of directors Stephen Lee Ching Yen, Christina Ong and Lucien Wong Yuen Kai from the board, and the appointment of two new directors, Dominic Ho Chiu Fai and Simon Cheong Sae Peng.

Mr Goh received S$4.32 million in total remuneration in the year ended March 31, 2018, from S$5.02 million the previous year. Although his salary increased to S$1.37 million, bonus paid out for FY2017 performance declined to S$1.73 million from S$1.95 million the year before. The value of Mr Goh's share-based compensation also fell to S$1.09 million in FY2018, compared to S$1.67 million in FY2017.

SIA's net profit fell 55.2 per cent to S$360.4 million in FY2017. In FY2018, net profit rebounded, more than doubling to S$892.9 million.

SIA chairman Peter Seah's total remuneration more than doubled to S$763,110 in FY2018 from S$376,650 a year ago, reflecting his ascension to chairmanship of the board from Jan 1, 2017. SIA pays its chairman an all-in retainer fee of S$750,000. Before becoming chairman, Mr Seah received a retainer fee of S$160,000 as deputy chairman.

In its sustainability report, SIA also said that it met a more stringent safety target in FY2018 for flight incident reports. The airline had 0.96 incident report per 1,000 flights, below its 0.98 report per 1,000 flights goal. In FY2017, SIA aimed for fewer than 1.02 incident reports per 1,000 flights, but only achieved a rate of 1.04 reports per 1,000 flights. The airline did not disclose its target for the year ahead.

SIA also maintained its previously stated goal to reduce electricity consumption in its offices by 15 per cent; and waste generation from its buildings by 30 per cent by fiscal 2021.

In a statement to shareholders, Mr Seah expressed optimism about the airline's ongoing strategic transformation process, especially with Mr Goh leading a senior team to oversee the changes.

"The programme is going well and gaining momentum," Mr Seah said.

As at 11.53am on Thursday, SIA shares were trading at S$10.72 apiece, down 0.9 per cent or 10 Singapore cents.