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Interests of OCBC and Great Eastern’s minority shareholders are fundamentally misaligned

The insurer should address the matter of its top executives receiving a significant proportion of their remuneration in OCBC shares

Ben Paul
Published Mon, May 6, 2024 · 05:00 AM
    • The chairman and CEO of Great Eastern should pledge to invest a significant proportion of their total remuneration in Great Eastern shares
    • The chairman and CEO of Great Eastern should pledge to invest a significant proportion of their total remuneration in Great Eastern shares PHOTO: BT FILE

    A QUESTION was raised at OCBC’s annual general meeting (AGM) this past week about how the group’s 88.4 per cent stake in Great Eastern may have contributed to the low trading liquidity and weak market value of the insurer’s shares.

    OCBC’s chairman Andrew Lee responded by noting that Great Eastern’s public float has been low for a long time. He added: “OCBC is not in the business of providing liquidity for another company.”

    Lee went on to reiterate the importance of Great Eastern to OCBC. He referred to the insurer as a “strategic pillar” that OCBC is building on, and said collaboration across the group has increased.

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