Institutional shareholders unhappy with Sapura Energy’s remuneration; EPF wants Shahril out
KUALA LUMPUR: Institutional shareholders including the Employees Provident Fund is unhappy that Sapura Energy Bhd 
’s board remuneration is deemed excessive, according to the Minority Shareholders Watchdog Group (MSWG).
MSWG’s general manager Lya Rahman told the press on the sidelines that the issue has been brought up many times in previous annual general meetings before this but it was only noted and no action was taken.
“This is even more pertinent because the company is not doing well at the moment (losses in FY18). Why are such huge bonuses and paychecks still being paid while no dividends are being paid to shareholders? We have brought this issue up many times but it’s mostly just been ‘noted’ and no concrete action is taken,” Lya told reporters on the sidelines of Sapura Energy’s AGM.
“Do note that this is a public listed company with a big float, and shareholders and managements views must be aligned. Shahril only owns about a 17% stake in the company,” she added.
Sapura Energy paid its CEO Tan Sri Shahril Shamsuddin RM71.92mil for in FY2018 ended Jan 31.
The RM71.92mil consisted of RM7.24mil in fixed monthly salaries (and other emoluments), RM55mil in bonuses and RM9.34mil under the defined contribution plan and RM348,000 for benefits in kind, according to its annual report.
This total pay package of RM71.92mil is compared to the profits after tax of RM206mil in FY2017 (salary in FY2018 is based on FY2017’s KPI).
In proportional terms, the RM71.92mil is 34.91% of Sapura’s profits after tax of RM206mil.
“This is excessive and the EPF has also said at the AGM that they are opposing the re-election of Shahril,” Lya said.
The EPF has a 5.21% stake in Sapura Energy, according to its latest 2018 annual report.
Shareholders are now voting for these resolutions now at the agm including the resolution to approve the director’s pay package.
’s board remuneration is deemed excessive, according to the Minority Shareholders Watchdog Group (MSWG).MSWG’s general manager Lya Rahman told the press on the sidelines that the issue has been brought up many times in previous annual general meetings before this but it was only noted and no action was taken.
“This is even more pertinent because the company is not doing well at the moment (losses in FY18). Why are such huge bonuses and paychecks still being paid while no dividends are being paid to shareholders? We have brought this issue up many times but it’s mostly just been ‘noted’ and no concrete action is taken,” Lya told reporters on the sidelines of Sapura Energy’s AGM.
“Do note that this is a public listed company with a big float, and shareholders and managements views must be aligned. Shahril only owns about a 17% stake in the company,” she added.
Sapura Energy paid its CEO Tan Sri Shahril Shamsuddin RM71.92mil for in FY2018 ended Jan 31.
The RM71.92mil consisted of RM7.24mil in fixed monthly salaries (and other emoluments), RM55mil in bonuses and RM9.34mil under the defined contribution plan and RM348,000 for benefits in kind, according to its annual report.
This total pay package of RM71.92mil is compared to the profits after tax of RM206mil in FY2017 (salary in FY2018 is based on FY2017’s KPI).
In proportional terms, the RM71.92mil is 34.91% of Sapura’s profits after tax of RM206mil.
“This is excessive and the EPF has also said at the AGM that they are opposing the re-election of Shahril,” Lya said.
The EPF has a 5.21% stake in Sapura Energy, according to its latest 2018 annual report.
Shareholders are now voting for these resolutions now at the agm including the resolution to approve the director’s pay package.
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