Shareholders use AGM to greenlight pay bumps for debt-ridden FGV Holdings non-executive chair, directors

·2-min read
Malay Mail
Malay Mail

KUALA LUMPUR, June 23 — FGV Holdings Berhad’s board members will receive a huge bump starting tomorrow as shareholders passed resolutions to reward the firm’s non-executive chairman and non-executive directors at its annual general assembly earlier today.

Datuk Dzulkifli Abd Wahab’s yearly fee as the firm’s non-executive chairman (NEC) will more than double to RM480,000 from RM300,000 previously as part of a new fee structure that will take effect June 24.

That means Dzulkifli will receive a monthly fee of RM40,000 as NEC of the board, up by RM15,000 on top of a RM32,000 fee per annum to chair the company’s board of sustainability committee, and another RM40,000 yearly fee as chair of the investment committee, RM8,000 more than what he received previously.

Dzulkifli will also continue to receive an allowance of RM2,000 per meeting.

The board of sustainability panel was established on September 21, 2021.

At the same time, shareholders greenlit the motion to raise the allowances of FGV’s seven non-executive directors (NED), who will be receiving a monthly fee of RM12,500, a RM2,500 increment.

Like Dzulkifli, all NEDs will continue to receive a meeting allowance of RM2,000 per meeting. Malay Mail understands that the board had met some 14 times since the previous AGM.

FGV, which is in the agribusiness and food industry, is an affiliate of the statutory body Federal Land Development Authority (Felda).

The company’s share price has dropped by nearly 13 per cent since the start of June, dropping by 60 sen per share from RM1.73 on June 1 to RM1.50 as of noon today.

The current share value is 50 sen lower than the peak last seen in March 3, when Felda failed in its bid to take the world’s largest crude palm oil producer private.

FGV listed on the Kuala Lumpur Stock Exchange in 2012 as an investor favourite at an offer price of 4.55 ringgit per share in what was hailed as the world’s second-largest initial public offer after Facebook.

The share price has plunged since the listing. On June 23, 2021, FGV share price traded at just RM1.30.