FGV to approve board fees at EGM

Felda is of the view that the proposed reduction of the chairman’s fee is justifiable


THE ongoing disagreement on FGV Holding Bhd’s remuneration packages for its board of directors will likely be resolved by the planter’s shareholders at the group’s EGM tomorrow.

Felda Non-Governmental Organisations National Council chairman Datuk Mazlan Aliman said the Federal Land Development Authority (Felda), one of FGV’s major shareholders, is of the view that the proposed reduction of the chairman’s fee is justifiable.

“I was made aware that Felda has agreed with the new resolution. I think the new fee is justifiable given the fact that the board has continued working despite the issue,” he told The Malaysian Reserve.

Mazlan, however, said the EGM’s outcome may be just a “temporary solution” to the predicament.

“It is also unfair to keep rejecting the board’s fee as they have been working on the previous salaries that were approved more than ayear ago…it will not solve anything,” he said.

The planter’s EGM will be held tomorrow at Felda’s corporate office, Platinum Park.

Meanwhile, Lembaga Tabung Angkatan Tentera (LTAT) said in a statement that it is premature for the fund to make any comment on this matter as the EGM has not taken place.

Minority Shareholders Watch Group CEO Devanesan Evanson said the planter would have engaged with its major shareholders before it could issue another set of resolutions, following the fallout in FGV’s previous general meeting.

“I think they must have talked to Felda because if they have not talked to their major shareholders

and put another set of resolutions in the EGM, it will reflect badly on the board,” he said.

In June, Felda, which owns a 33.6% stake in FGV, Koperasi Permodalan Felda Malaysia Bhd (5%) and LTAT (1.25%) rejected the directors’ fee proposed by FGV after a gruelling five-hour AGM.

The planter is seeking the endorsement of six resolutions at the EGM tomorrow, including shareholders’ approval on the payment of directors’ fees for non-executive chairman and non-EDs in respect of the financial year ended Dec 31, 2018 (FY18).

In a notice to shareholders, the board stated it is also seeking approval for 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.

The upcoming EGM will see the company reducing its directors’ fees for FY18 to RM1.1 million and RM490,272 for board committee fees.

The company is also proposing monthly board fees of RM10,000 to each non-ED starting Jan 1, 2019, until the next AGM to be held next year.