SHAH ALAM - Federal Land Development Authority (Felda) Chairman Datuk Seri Idris Jusoh has cleared the air over allowances for the FGV chairman, and non-executive directors, stating there is confusion over the payment.
For the 2021 financial year, he said FGV raked in profits of more than RM1 billion (RM1.175 billion after taxes).
"FGV has not been made changes to the chairman's allowances in the last decade. At the same time we want FGV to implement good corporate governance as seen in other public listed companies," he said.
He added the directors' fee increase was 21 percent.
"This involves an increase of RM15,000 a month and RM2.5 monthly increase to its committee members. In fact, the increase of RM15,000 a month for the chairman is for vehicle allowances. Previously, the chairman received a vehicle allowance of RM15,000 monthly. This allowance has been converted into a fee to the Chairman," said Idris.
He said in other words, "there is no actual increase in financial form for the chairman of FGV."
Yesterday, it was reported that the biggest increase is for FGV’s non-independent non-executive chairman Datuk Dzulkifli Abd Wahab, whose director fee is increased by RM120,000 or 60% to RM480,000 or RM40,000 per month, from RM300,000 previously.
It is noted that Dzulkifli has waived his fees as the chairman of the board sustainability committee worth RM40,000 until the next FGV AGM in 2023. He also waived his meeting allowances for that committee, at RM2,000 for each attendance.
But Idris said "he was an important individual who defended the welfare of the settlers when FGV was first listed. As a result, he was sent to Rome as an agricultural attaché under the MOA (Ministry of Agriculture and Agro-Based)," he said.
As for the FGV chairman's allowance of RM40k per month, Idris said it is "much lower when compared to the chairman of other Public Listed Companies, especially companies with market capitalisation."
It was reported that FGV Holdings Bhd shareholders passed resolutions to increase the director fees for its chairman and non-executive directors by between 25% and 60% at its 14th annual general meeting.
Meanwhile, the directors’ fees for six other FGV non-executive directors were raised to RM150,000, from RM120,000, not including board committee membership and allowances.