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Performance bonus spat may be just the tip of an iceberg

The Lian Beng case raises many issues relating to executive remuneration and corporate governance challenges in family-controlled and family-run firms.

Between FY2013 and FY2014, the total remuneration of the chairman and MD (above) moved from the S$2.75-3 million band to the S$5.25-5.5 million band, while those for the other two EDs moved from the S$1.5-1.75 million and S$1-1.25 million bands to the S$2.75-3 million and S$2-2.25 million bands respectively.

ON July 10, the two independent directors (IDs) of Lian Beng - Sitoh Yih Pin and Wan Soon Bee - resigned, citing "differences in opinion from the management over certain company affairs". Both had been on the board since the company's initial public offering in 1999.

The Singapore...