KUALA LUMPUR: The shareholders of FGV Holdings Bhd have finally given the green light for the chairman's fee, which was cut by 50% to RM300,000 per year.
In an Extraordinary General Meeting (EGM) held on Wednesday at Menara Felda, shareholders have approved all six resolutions relating to the payment of fees and benefits of the chairman and the non-executive directors, with an approval rate of 99.96%.
For context, Resolutions 1 and 2 sought the shareholders' approval for the fees of the chairman and non-executive directors for the financial year of 2018 (FY18).
Resolutions 3 and 4 refer to the fees of the chairman and non-executive directors for the period of Jan 1 this year until FGV's next annual general meeting (AGM) in 2020.
Meanwhile, Resolutions 5 and 6 sought the green light for the non-fee benefits to be enjoyed by the chairman and non-executive directors from June 26, 2019 until the next AGM.
Speaking to reporters after the EGM today, FGV chief executive officer Datuk Haris Fadzilah Hassan said the chairman's fee will be reduced from RM600,000 per annum to RM300,000. Meanwhile, the non-executive directors' fee will remain unchanged at RM120,000 annually.
When asked whether the fee cut for the chairman was proposed by Federal Land Development Authority (Felda), which is FGV's single largest shareholder, Haris simply said the major shareholders have been consulted.
"After the AGM previously, there were some discussions that took place to understand the major shareholders' concerns and that (fee cut) is the result of the discussion.
"It is also in line with some of the practices that have been adopted by other government linked companies as well," he said.
In the five-hour AGM held earlier on June 25, the major shareholders of FGV – Felda, the Armed Forces Fund Board (LTAT) and Koperasi Permodalan Felda Malaysia Bhd (KPF) – gunned down resolutions pertaining to the fee payment of its board members in an unprecedented move.
Felda owns about 33.6% in FGV, followed by KPF with 5% and LTAT with 1.25%.
Datuk Wira Azhar Abdul Hamid is the non-executive chairman of FGV.