Boost for shareholder activism

EFFICIENT spending by government-linked entities could not be more important than during the current period of unreasonably high indebtedness faced by the nation. This means that rent-seeking by directors through inefficient pay (such as directors’ fees, benefits and perks) should be actively questioned and governed.

The bold move by major shareholders of FGV Holdings Bhd in voting against the directors’ fees and benefits-in-kind should be congratulated. Our present study finds FGV among the top 10 government-linked entities that reported the highest aggregate pay for non-executive directors between 2013 and 2017.