Hong Fok    Last:0.96   -

Directors Remuneration based on unrealised gains

You got the point...if the gain is only on paper , then company shouldn' t it treat as " cash" gain and " reward' people with cash... furthermore such paper gain can " dropped' back to lower " gain" so should they return the " reward" ?

 

 

I pointed this out under Raffles Education Forum this week. The gist is that the directors paid their executive directors based on the UNREALISED REVALUATION GAINS of the properties. There was no increase of cash. This is only a paper gain but the payment of the salaries were made in CASH.

This is a mismatch. How did they make the cash payment to the directors? It must be from cash or borrowings.

What was more annoying is that the independent directors supported this. The lead independent director enthusiastically supported it at the AGM. Are the independent directors independent?