FGV appoints consultant to review remuneration

KUALA LUMPUR – FGV Holdings Berhad (FGV) has appointed an independent consultant to conduct a review and benchmarking on the non-executive directors’ remuneration.

This was following Non-Executive Chairman, Datuk Dzulkifli Wahab allegedly accorded to receive on a cash basis, a director fee of RM300,000 per annum (or RM25,000 per month) and a car allowance of RM180,000 per annum (or RM15,000 per month).

The resolutions relating to the Non-Executive Chairman and Director’s frees and benefits are among the resolutions normally tabled as ordinary business at all Annual Grand Meetings (AGMs).

“FGV Board was advised by the independent consultant that the car allowance accorded to the Non-Executive Chairman can be replaced with the provision of a company car as it is not reflective of the market and sectorial norms as companies do not generally monetise the provision of a company car benefit in the form of allowances.

“Pursuant to the advice, FGV Board proposed to provide a company car to the Non-Executive Chairman and maintain the amount of cash accorded to him previously by converting the car allowance of RM180,000 to board fees.

“Hence, there is no increase in the total cash received by the Non-Executive Chairman,” the group said in a statement.

Previously in 2019, the Non-Executive Chairman’s fees were reduced from RM600,000 to RM300,000 together with some abolishment and reduction in certain benefits.

The group stated that Dzulkifli intended to use existing car belonging to a subsidiary company to be the company car with an annual budgeted expense of not more than RM180,000 as per approved at the AGM.

Moreover, the statement also highlighted Dzulkifli had agreed in waiving his fees as Chairman of the Board Sustainability Committee until the next AGM in 2023 amounting to RM40,000 per annum and the meeting allowance of RM2,000 per meeting.

“Dzulkifli also did not utilise his entitlement for benefits related to entertainment allowance, club membership and personal bodyguard in 2021,” it said.

On another note, FGV had concluded its 14th AGM on 23 June 2022 and has shown a significant performance for the year 2021.

“The Group’s revenue inclined 39 per cent year-on-year around RM19.57 billion, profit before zakat and tax increased significantly to RM1.71 billion, while profit after tax and minority interest increased to RM1.17 billion,” Dzulkifli said in the statement.