KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) has introduced a Voluntary Separation Scheme (VSS) for its general managers and above as part of manpower optimisation exercise.
“This initiative has to begin from the top and it is a signal that we are making tough decisions in order to enhance the confidence of our shareholders and stakeholders,” said FGV group president and chief executive officer Datuk Zakaria Arshad.
"The pool of general managers, senior general managers and vice-presidents including myself would also be taking cuts of about 15 per cent to our allowances, as part of the company’s frugal cost management initiative," Zakaria said in a statement today.
The company expects a 15 per cent take up of the VSS out of the 236 senior management staff who had received the offer.
Earlier, two newspapers, quoting un-named sources, reported that there might be organisational changes within FGV and MSM Malaysia Bhd.
Zakaria clarified there was no significant change in the current management structure at both FGV and MSM Malaysia.
“Mr S. Palaniappan, who has almost 40 years of experience in the plantation and R&D industry will remain as our chief operating officer of plantation sector in charge of palm upstream, palm downstream and R&D activities," he said.
“Datuk Khairil Anuar Aziz is chief operating officer of sugar and logistics and others’ sector with an added responsibility to oversee the sugar sector effective January 2018,” Zakaria added.
The decision to moot VSS is in line with FGV’s strategic intent to deliver sustainable performance in the face of a challenging industry and to improve the operational and financial performance of FGV’s core business.