FGV appoints independent consultant to review directors’ compensation

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KUALA LUMPUR: FGV Holdings Bhd appointed an independent consultant to carry out a review and benchmarking of the non-executive director’s remuneration.

In a statement, FGV said non-executive chairman Datuk Dzulkifli Abd Wahab is currently entitled to receive cash, attendance fee of RM300,000 per year or RM25,000 per month and car allowance of RM180. ,000 per year or RM15,000 per month.

“The FGV Board of Directors has been informed by the independent consultant that the car allowance granted to the non-executive chairman should be replaced by the provision of a company car as it does not reflect the market and the standards sectoral, because companies generally do not monetize the provision of a company vehicle in the form of indemnities.

“In accordance with the notice, the FGV Board has offered to provide a company car to the Non-Executive Chairman and to maintain the cash amount previously granted to him by converting the car allowance of RM180,000 to consulting fees.

“Therefore, FGV further explained that there was no increase in the total cash amount received by the non-executive chairman,” he said.

The group also noted that Dzulkifli intended to use an existing car owned by a subsidiary as a company car with a budgeted annual expenditure not exceeding RM180,000, as approved at the AGM.

In a statement, FGV said its shareholders passed resolutions to increase attendance fees for its chairman and non-executive directors from 25% to 60% at its general meeting last Thursday.

He said the fee for the non-executive chairman was reduced from RM600,000 to RM300,000 in 2019 along with some removal and reduction of some benefits.

Therefore, FGV explained that there is no increase in the total cash amount received by the non-executive chairman.

The group also noted that Dzulkifli intended to use an existing car owned by a subsidiary as a company car with a budgeted annual expenditure not exceeding RM180,000, as approved at the AGM.

“The FGV Board would also like to point out that Dzulkifli has agreed to waive his fees as Chairman of the Board’s Sustainability Committee until the next Annual General Meeting in 2023 amounting to 40 RM 000 per year and meeting allowances of RM 2,000 per meeting.

“In 2021, Dzulkifli failed to use his entitlement to entertainment allowance, club membership and personal bodyguard benefits,” he said. – Bernama


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