FGV appoints independent consultant to review chairman’s fees

FGV Holdings Bhd has appointed an independent consultant to conduct a review and benchmarking of the remuneration for its non-executive director.

In a statement, FGV said the non-executive chairman, Dzulkifli Abd Wahab, was currently accorded to receive on a cash basis a director’s fee of RM300,000 per annum or RM25,000 per month and a car allowance of RM180,000 per annum or RM15,000 per month.

“The FGV board was advised by the independent consultant that the car allowance accorded to the non-executive chairman be replaced with the provision of a company car as it is not reflective of the market and sectorial norms as companies do not generally monetise the provision of a company car benefit in the form of allowances.

“Pursuant to the advice, the FGV board proposed the provision of a company car for the non-executive chairman with the amount of cash previously accorded to him maintained by converting the car allowance of RM180,000 to board fees.

“Hence, FGV further explained that there is no increase in the total cash received by the non-executive chairman,” it said.

The group also noted that Dzulkifli intended to use an existing car belonging to a subsidiary company as the company car with an annual budgeted expense of not more than RM180,000 as approved at the AGM.

In a statement, FGV said its shareholders had passed resolutions to increase the director’s fees for its chairman and non-executive directors by between 25% and 60% at its AGM last Thursday.

It said the non-executive chairman’s fees were reduced from RM600,000 to RM300,000 in 2019 together with some abolishments and reductions in certain benefits.

“The FGV board would also like to highlight that Dzulkifli has agreed to waive his fees as chairman of the board sustainability committee until the next AGM in 2023, amounting to RM40,000 per annum, and the meeting allowance of RM2,000 per meeting.

“In 2021, Dzulkifli did not utilise his entitlement for benefits relating to entertainment allowance, club membership and personal bodyguard,” it added.