Huge losses, huge payout
FocusM | 20 Jul 2018 00:30
The remuneration of Sapura Energy Bhd’s president and CEO, Tan Sri Shahril Shamsuddin, has long been a point of contention with minority shareholders of the company.
The fact that Shahril received a whopping RM75.64 mil for FY18 is a major issue. In FY17 he received RM88.71 mil. This is especially distressing to minorities when Sapura Energy itself suferred a massive loss of RM2.5 bil for FY18 (it had to include a massive impairment provision of RM2.1 bil for its drilling rigs segment).
Shahril’s package of RM75.64 mil is one of the highest after Tan Sri Lim Kok Thay, the chairman and CEO of Genting Bhd. However, Genting is a profitable company.
Excessive payouts by companies which are incurring heavy losses are irresponsible. Board remuneration must commensurate with financial performance.
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