President of Shipping & Chartering, Garrick Stanley. NextInsight file photoQ: Why was there a hike in management compensation between FY2013 and FY2014?
Mr See: Every year, our directors' and CEO's salaries total about S$2.2 million to S$2.3 million.
In 2014, total remuneration paid to directors increased to S$4.2 million because we gave share awards valued at S$1.8 million to Garrick Stanley during his tenure as Group CEO.
This is a talent retention bonus structured into our acquisition of Go Marine to align Mr Stanley’s interest with the Group's.
The share awards were part of the purchase consideration for the M&A.
Separately, the Group's senior management (including all directors, Mr Yaw, myself, and the CFO) took a pay cut of 20% effective from 1 March this year.
We are also proposing a 20% cut in fees payable to the independent directors.
Crowd of shareholders at Otto Marine's AGM. Photo by Sim Kih
Q: Will you have a share consolidation?
Mr See: Under the new listing guideline, share consolidation is required for stocks trading at less than 20 cents.
The Board will make sure our share price is stable before setting the share consolidation date.
Q: Why don’t you move to Catalist to by-pass this share consolidation rule?
Many fund managers are not permitted to invest in Catalist companies.
It is in the interest of shareholders that we stay on the Main Board.
