SINGAPORE: Companies listed on the Singapore Exchange are not disclosing the remuneration of their top executives adequately, as required by the Code of Corporate Governance.
A report released on Thursday (Jan 11) showed that only 13 companies out of the 609 surveyed met a set of best practices, including putting up all remuneration components for shareholders' approval.
The report was based on a study conducted by Professor Mak Yuen Teen of the National University of Singapore Business School and Chew Yi Hong, an MBA graduate from the London Business School. It looked at the financial reports of the 609 companies for the financial year between April 2016 and March 2017.
The study found that companies that paid their top executives more were less transparent about disclosing their salaries.
It also found that only 36 per cent of companies disclosed the exact salaries of their chairmen, while 30 per cent did the same for CEOs.
Among the companies that disclosed, the mean annual salary of executive chairmen was S$984,000, with the highest paid among them getting S$8.4 million.
The mean annual remuneration for CEOs was S$1.6 million, with the top earner drawing S$12.9 million.
The report recommended several ways the disclosure of top executives’ remuneration can be improved.
For example, it suggested that the Code of Corporate Governance recommends the disclosure of the total remuneration of a company's top earners, rather than only that of its top five key management personnel.