Shareholders use AGM to greenlight pay bumps for debt-ridden FGV Holdings non-executive chair, directors

FGV Holdings Bhd, which is in the agribusiness and food industry, is an affiliate of the statutory body Felda. — Picture by Choo Choy May

FGV Holdings Bhd, which is in the agribusiness and food industry, is an affiliate of the statutory body Felda. — Picture by Choo Choy May

By Syed Jaymal Zahiid

Thursday, 23 Jun 2022 5:34 PM MYT

KUALA LUMPUR, June 23 — FGV Holdings Berhad’s board members will receive a huge bump starting tomorrow as shareholders passed resolutions to reward the firm’s non-executive chairman and non-executive directors at its annual general assembly (AGM) earlier today.

Datuk Dzulkifli Abd Wahab’s yearly fee as the firm’s non-executive chairman (NEC) will rise to RM480,000 from RM300,000 previously as part of a new fee structure that will take effect June 24.

That means Dzulkifli will receive a monthly fee of RM40,000 as NEC of the board, up by RM15,000 on top of a RM32,000 fee per annum to chair the company’s board of sustainability committee, and another RM40,000 yearly fee as chair of the investment committee, RM8,000 more than what he received previously.

Dzulkifli will also continue to receive an allowance of RM2,000 per meeting.

The board of sustainability panel was established on September 21, 2021.

At the same time, shareholders greenlit the motion to raise the allowances of FGV’s seven non-executive directors (NED), who will be receiving a monthly fee of RM12,500, a RM2,500 increment.

Like Dzulkifli, all NEDs will continue to receive an allowance of RM2,000 per board meeting. In the past year, Malay Mail understands that the board had met nearly 48 times.

Sources in the AGM said shareholders also agreed to give Dzulkifli a car “of at least 2,000cc” engine capacity on top of an allowance worth RM180,000 for vehicle utility expenses. Previously he received just RM15,000 monthly for car maintenance.

The resolutions were among the 13 motions brought up during the 14th AGM done virtually, according to a Bursa Malaysia filing.

A total of 966 voted in favour of the resolution for the NEC pay rise against 196 shareholders, while 965 voted for the resolution involving the NEDs against 196.

For the resolution on meeting allowances, 963 voted for and 196 against, while 961 voted for the NEC benefits against 171.

FGV, which is in the agribusiness and food industry, is an affiliate of the statutory body Federal Land Development Authority (Felda).

The company’s share price has dropped by nearly 13 per cent since the start of June, dropping by 60 sen per share from RM1.73 on June 1 to RM1.50 as of noon today.

The current share value is 50 sen lower than the peak last seen in March 3, when Felda failed in its bid to take the world’s largest crude palm oil producer private.

FGV listed on the Kuala Lumpur Stock Exchange in 2012 as an investor favourite at an offer price of 4.55 ringgit per share in what was hailed as the world’s second-largest initial public offer after Facebook.

The share price has plunged since the listing. On June 23, 2021, FGV share price traded at just RM1.30.