KUALA LUMPUR: FGV Holdings Bhd shareholders have today shown dissatisfaction towards their board of directors' performance when they voted to reject their pay packages.
Last year, FGV posted net losses of RM1.08 billion, dragged by falling palm oil prices as well as impairments and provisions totalling RM1.04 billion. This was on the back of RM3.23 billion revenue.
FGV chairman Datuk Wira Azhar Abdul Hamid said all directors had been re-elected but resolutions related to their pay packages had been rejected by major shareholders Federal Land Development Authority (Felda), Koperasi Permodalan Felda and Lembaga Tabung Angkatan Tentera.
Azhar said FGV board members were currently discussing the most appropriate thing to do and looking at all options available.
"I, myself, don't know the basis for the major shareholders to reject the board of directors' remuneration package.
"It seems that the shareholders' message to the board of directors is 'we want you to work but we're not paying you' which I think is a little bit irrational," Azhar told reporters after a gruelling five-hour FGV shareholders' meeting here today.
According to FGV's 2018 annual report, its board of directors consists of Azhar, Mohd Hassan Ahmad, Datuk Dr. Othman Omar, Datuk Yusli Mohamed Yusoff, Datuk Mohamed Suffian Awang, Datuk Dr. Salmiah Ahmad, Dr. Mohamed Nazeeb P.Alithambi, Datuk Mohd Anwar Yahya, Dr. Nesadurai Kalanithi and Datin Hoi Lai Ping.
Based on FGV's 2018 annual report, the fee payable to Azhar as chairman of the board was RM1.95 million, versus the total remuneration of RM5.74 million for the board, which consists of 10 members.
When asked if FGV directors would resign, Azhar said: “There is no immediate decision among directors, for now. We are considering all options."
He stressed that FGV directors were responsible and professional in executing their duties.
"We consider all factors carefully to put forward plans that would ensure sustainability of FGV. But today's vote gives the impression that our efforts for the past 18 months are not appreciated," Azhar said, dejectedly.
To another question if FGV directors would go on working without being paid, Azhar reiterated that the board had yet to collectively decide on their next move.
"What concerns us most is the interests of the company," he remarked.
Felda is FGV's biggest shareholder with a 33.7 per cent stake, while KPF and LTAT own 5.25 per cent and 1.25 per cent respectively.
The rejected resolutions were specifically to approve the payment of 2018's directors’ fees, payment of a portion of directors’ fees payable from June 26, 2019 until the next annual general meeting (AGM), and the payment of benefits payable from June 26 until the next AGM.
Shareholders also rejected the resolution for directors to allot and issue shares pursuant to Section 75 of the Companies Act, 2016.