KUALA LUMPUR: The lengthy dispute over remuneration packages for FGV Holding Bhd directors has finally been resolved.
FGV group chief executive officer Datuk Haris Fadzilah Hassan said a total of 99.96 per cent of shareholders had given the greenlight to six board fee resolutions at its extraordinary general meeting (EGM) here today.
“All six resolutions related to the chairman and board of directors fees and benefits were passed today to the shareholders in attendance and were approved,” Haris said.
He explained that the resolutions followed shareholders’ rejection of the previous proposals during FGV’s recent annual general meeting (AGM).
“The new resolutions were made following the results of the discussions after the AGM and also in line with other government-linked companies’ practices,” he told reporters after the EGM.
In June, Felda, which owns a 33.6 per cent stake in FGV, Koperasi Permodalan Felda Malaysia Bhd and Lembaga Tabung Angkatan Tentera which own five and 1.25 per cent respectively, rejected the directors’ fee proposed by FGV after a gruelling five-hour AGM.
Today’s EGM saw the company reduce its directors’ fees for financial year 2018 (FY18) to RM1.1 million and RM490,272 for board committee fees.
Shareholders also approved monthly board fees of RM10,000 to each non-executive director starting January 1 this year until the next AGM to be held next year.
In a notice to shareholders, the board stated that a fee of RM300,000 annually, to be paid monthly to the non-executive chairman from Jan 1 this year until the next AGM in 2020, was also approved.
Meanwhile, Haris said the board had been driving FGV’s transformation programme, which has started showing results.
“We have reported the progress made by the programme thus far at our last quarterly briefing.”
He stressed that the board was fixing legacy issues and shareholders’ value that was destroyed by previous management and directors.
Haris said the board had also been dealing with the twin challenges of poor operational performance resulted from the legacy investments.
“We at FGV are in the process of resolving all of these issues. Once we have corrected all the historical issues, we will start seeing the results of our growth strategy that the board has put in place,” he added.