LTAT: It should be based on performance, prospects
KUALA LUMPUR: Lembaga Tabung Angkatan Tentera (LTAT) said FGV Holdings Bhd directors’ pay packages should commensurate with the plantation company’s current state of affairs and prospects.
LTAT is one of three key FGV shareholders that have shown dissatisfaction towards the performance of its board of directors by voting against their remuneration packages.
The other two are Federal Land Development Authority (Felda) and Koperasi Permodalan Felda (KPF).
“Given the prevailing economic conditions and FGV’s current financial standing, we are of the view that the directors’ remuneration should commensurate with the current state of affairs at FGV and its prospects ahead,” said LTAT in a statement yesterday.
“We wish to emphasise that this decision was not taken lightly and was reached after considerable discussion and deliberation. The decision was premised on the fact that LTAT strongly believes in shareholder activism, particularly to protect the interests of our contributors who are members of the Armed Forces,” it added.
Last year, FGV posted a net loss of RM1.08 billion compared with a net profit of RM130.928 million in 2017.
This loss was dragged by falling crude palm oil prices as well as impairments and provisions totalling RM1.04 billion.
Felda is FGV’s biggest shareholder with a 33.7 per cent stake, while KPF and LTAT own 5.25 and 1.25 per cent, respectively.