During the past 5 years from 2007 to 2011, cumulative remuneration paid to the 4 Executive Directors (“EDs”) amounted to a staggering $43.0 million, roughly 3.23 times the cumulative company’s adjusted NPAT of $13.299 million (see Graph A ; Table 1 & 2).
The company’s market capitalisation is less than $340 million based on its last traded price of 42c per share, yet it incurred this mind-boggling $43.0 million of EDs’ remuneration in just the last 5 years. At the rate the EDs are enriching themselves, it will take less than 8 years to amass a fortune equivalent to the company’s market capitalisation of $340 million. The EDs’ remuneration was excessive as compared to industry benchmark and other listed companies that are more dynamic and bigger such as Hotel Properties Ltd.
