Fat cats or top dogs: Is the Singapore CEO overpaid?

For a start, the compensation package of a CEO is very different from a typical employee on various counts - and not just the amount.

According to Christine Koh, senior client partner, advisory at Korn Ferry Singapore, the remuneration committee is in charge of establishing a governance foundation for compensation to ensure that it is"fair and equitable". Long-term incentives , on the other hand, take into account a performance period of three to four years, where companies make contingent grants subject to achievement of performance conditions after the fixed time frame.

Prof Mak points out a trend where the bigger the company gets, the fixed salary component tends to fall as a percentage of the total remuneration, and the bonus and share incentive components increase. There is a premium for directors sitting on remuneration committees because of the expertise needed and the reputation risk involved."No one wants to be on the front page for rewarding the CEO several million dollars when the share price drops," he says wryly.Kumar Subramanian, partner, South-east Asia, talent, rewards & performance, Aon, says that the LTI component here is"quite modest" compared to countries such as the US, UK and Australia.

However, the value of the base salary and take-home total compensation has actually stayed flat, if not lower, says Mr Ganu. Thus, while annual report disclosures suggest that CEO pay levels are going up and may seem misaligned with company performance, this is actually misleading, continues Mr Ganu. Commenting on the discrepancy, Mr Ganu notes that in FY2016, companies might have experienced the impact from the slump in oil prices which had muted company performance - a factor which management may not necessarily have control of.

"Imagine being a shareholder of a $100 million loss-making business: if through the efforts of management, they were able to improve the position in one year to only a $10 million loss - then in that context, it might make sense to pay management bonuses, but not full amounts, for helping turn the business around, and stemming some of the historic losses," he says.

Source: News Formal (newsformal.com)

Singapore Latest News, Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

A man browsing through Popular bookstore gets fat-shamed and threatenedSingapore – Jan Rick Camara Mascarina was only looking for supplies at White Sands’ Popular Bookstore when an encounter with a passer-by turned in
Source: IndependentSG - 🏆 2. / 72 Read more »

Not easy to replace key source of artificial trans fat, but it can be done: Experts
Source: TODAYonline - 🏆 1. / 99 Read more »

Vegan pork in Hong Kong, impossible burgers in Singapore: how investors grew fat on Asia’s fad for mock meatHONG KONG — Hong Kong entrepreneur David Yeung is encouraging people to eat less meat to help save the earth. The trouble is, too many love their meat, especially pork.
Source: TODAYonline - 🏆 1. / 99 Read more »

Singapore tops quality of living ranking and personal safety for Asia: Mercer pollSINGAPORE has come out tops as the country with the highest quality of living in Asia-Pacific, with the highest rank in personal safety. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »

Singapore ranked top Asian city in annual Quality of Living surveySingapore is ranked the top Asian city in an annual Quality of Living survey by global human resources consulting firm Mercer. The index, released on Wednesday (13 March), placed Singapore as joint No. 25 with Oslo, out of 231 cities ranked in the survey.
Source: YahooSG - 🏆 3. / 71 Read more »

Economists trim 2019 growth forecast to 2.5% for Singapore, trade still a top risk: MAS surveySINGAPORE: Private-sector economists have once again trimmed their 2019 growth forecasts for Singapore, with trade protectionism and a slowdown in ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Singapore expected to be among top 10 listing destinations in 2030: PwCSINGAPORE (Mar 13): Apart from their own exchanges, more issuers would consider listing on the Singapore Exchange (SGX) in 2030 on the back of increasing focus on the Southeast Asian market, according to a new PwC report, Capital Markets in 2030.In a survey of nearly 400 executives at companies from
Source: YahooSG - 🏆 3. / 71 Read more »

Singapore comes out tops for highest quality of living in Asia-PacificGlobally though, the city-state is only in 25th place. This article, Singapore comes out tops for highest quality of living in Asia-Pacific, originally appeared on Coconuts, Asia's leading alternative media company. Want more Coconuts? Sign up for our newsletters!
Source: YahooSG - 🏆 3. / 71 Read more »

Safra Singapore Bay Run and Army Half Marathon called off this year: Singapore ArmyThe cancellation comes after the SAF announced an unprecedented lowering of training tempo across all services on Jan 24.. Read more at straitstimes.com.
Source: The Straits Times - 🏆 8. / 63 Read more »