Singtel: All get big pay rise despite small net profit

[makapaaa]

http://www.tremeritus.com/2015/06/22/singtel-all-getting-big-pay-rise-despite-small-net-profit/

[h=2]Singtel: All get big pay rise despite small net profit[/h]

June 22nd, 2015 |

Author: Editorial



According to Singtel’s annual report released today (22 Jun), the company
posted a 3.5% rise in net profit to $3.782 billion for the financial year which
ended 31 March 2015:

Group revenue increased 2.2% to $17.2 billion in the same financial year.

However, Singtel’s chief executive officer Chua Sock Koong took home about
$5.6 million in total remuneration, comprising a variable bonus of $3.83 million
and her salary of $1.68 million for the year.

This is an increase of 19% from the previous year when Ms
Chua received $4.71 million in total.

The telco’s 5 other key management staff took home a total of $14.42
million:

1. Allen Lew – $4.97 million
   
2. Bill Chang – $2.91 million
   
3. Jeann Low – $2.51 million
   
4. Hui Weng Cheong – $2.24 million
   
5. Yuen Kuan Moon – $1.78 million

In the previous financial year ended March 2014, the key management staff
took home only $12.6 million:

1. Allen Lew – $3.31 million
   
2. Bill Chang – $1.94 million
   
3. Jeann Low – $2.13 million
   
4. Hui Weng Cheong – $1.74 million

That is to say, the key management staff have all taken home more money in
FY2015 compared to FY2014:

1. Allen Lew – 50% increase
   
2. Bill Chang – 50% increase
   
3. Jeann Low – 18% increase
   
4. Hui Weng Cheong – 29% increase

In his review, Singtel’s chairman Simon Israel said, “Looking ahead, we see
the mobile data revolution gaining further momentum. The need for people,
businesses and objects to be interconnected will drive higher demand for
connectivity and data services.”

“The challenge, and the opportunity, for Singtel is to continue to lead and
shape this data-driven digital world with services that are important to our
customers and create sustainable value for our shareholders,” he added.

In any case, it seems that despite a meager 3.5% increase in Singtel’s net
profit, all the key management staff including the CEO had a big increase in
their remuneration package ranging from 18% to 50%.

Do you think this is fair?

 

[makapaaa]

http://www.tremeritus.com/2015/06/24/singtel-defends-its-big-remuneration-to-senior-staff/

[h=2]Singtel defends its big remuneration to senior staff[/h]

June 24th, 2015 |

Author: Editorial

Netizens are furious with Singtel's Allen Lew for
getting a 50% pay rise. (Photo: TNP).


TRE published an editorial on Monday (22 Jun), revealing that while Singtel
has posted a 3.5% rise in net profit to $3.782 billion for the financial year
ended 31 March 2015, the remuneration of its key management staff increased a
lot more (‘Singtel: All get big pay rise despite small net profit‘).

Singtel’s chief executive officer Chua Sock Koong took home about $5.6
million in total remuneration, comprising a variable bonus of $3.83 million and
her salary of $1.68 million for the year. This is an increase of
19% from the previous year when Ms Chua received $4.71 million
in total.

The telco’s top 5 key management staff took home a total of $14.42 million,
some 14.4% more from the previous year’s $12.6 million.

2 of them even had an increase of 50%:

1. Allen Lew – $4.97 million (50% increase)
   
2. Bill Chang – $2.91 million (50% increase)
   
3. Jeann Low – $2.51 million (18% increase)
   
4. Hui Weng Cheong – $2.24 million (29% increase)

Yesterday (23 Jun), following a fierce backlash online, Singtel issued a new
public statement calling for a “balanced and complete view” of how it
remunerates its CEO and senior management [Link].

Singtel Chairman defends its management remuneration
decision

Replying on behalf of Singtel, Chairman Simon Israel reminded the public,

It is important that our stakeholders and the public have a balanced and
complete view of how we remunerate our CEO and senior management.

We have a pay-for-performance philosophy that measures and rewards
short-term, mid-term and long-term performance. Short-term performance is
measured through a balanced scorecard approach which rates individuals against
financial and non-financial KPIs. Mid-term performance is rewarded by a
value-sharing bonus which is dependent on the overall economic profit of the
group i.e. excess return over risk-adjusted cost of capital.

This is a true measure of value creation for our shareholders and is not
linked in any way to the vagaries of the stock market. It is important to note
that this bonus can be clawed back if Singtel does not continue to deliver
sustainable value.

Lastly, there is a long-term incentive scheme in the form of performance
shares to reinforce the delivery of long-term growth measured by total
shareholder returns in relative and absolute terms.
​

Mr Israel said that Singtel’s total shareholder return for this year was 25%
compared to 11% for the Straits Times Index and 12% for the MSCI Asia Pacific
Telco Index.

“Our compensation framework ensures an alignment between compensation and
performance. The increase in total compensation to the CEO of 11% (19% cash
component) reflects the out performance against various plans and their targets,
and not profits alone,” he explained.

But Mr Israel did not reveal what these non-profit plans and targets
were.

He said that Singtel’s compensation is benchmarked against comparable
businesses. Three quarters of Singtel’s earnings come from overseas and this
diversification has helped create considerable shareholder value, he said.

“We would encourage the media to take a considered view of remuneration
matters in striving for higher standards of corporate governance in Singapore,”
he pleaded.

Netizens furious Allen Lew got 50% pay rise

Among Singtel’s key senior management staff getting a big pay rise in the
last financial year is Allen Lew.

Netizens appear to be most angry with Mr Lew getting a 50% pay increment.

A TRE reader wrote, “Allan Lew was the b*****d who bid $400 million for BPL
[i.e. the Barclayscard Premier League aka English Premier League] football. This
resulted in football fans having to pay $60 per month for BPL. It’s more than
$60 if you include June and July when we still pay although there are no BPL
matches.”

“This CEO is also the cause of us paying $100 for the last World Cup while
other Asian countries paid only $10 or got it FREE. It makes my blood boil to
see him getting $$$ millions for daylight robbery of football fans,” he
added.

Another TRE reader said, “Allan Lew is football fans’ Public Enemy No 1… He
outbid StarHub for all the sports programs. We sports fans pay thru our nose
while this ‘Hum Kar Chan’ Allan Lew gets rewarded with $$$ millions.”

Indeed, it was reported in 2010 (‘It’s
not our fault‘) that many football fans believed that Singtel’s ambitious
bid for the English Premier League (EPL) broadcast rights in 2009 resulted in
consumers having to fork out more to watch the 2010 World Cup live
telecasts.

At the time, Allen Lew was quick to refute this, saying that both events
should not be linked. After Singtel won the EPL rights with a very high bid, it
was alleged that FIFA later used Singtel’s high bid as a yardstick in demanding
an exorbitant fee for the World Cup rights in Singapore.

Compared to $10.50 charged by StarHub for an early-bird World Cup package in
2006, Singtel and StarHub had to charge $70.62 for a similar package in 2010,
due to the high fees demanded by FIFA.

“A lot of people want to compare the World Cup with the EPL. I think it’s
very difficult to compare a four-week event with a three-year event. There is no
benchmark that allows you to compare them,” Mr Lew defended himself at the time.
“In my opinion, to compare World Cup with EPL is to use the wrong benchmark.”

 

[dancingshoes]

the moral of the story is to be a PAP lackey, you still get the perk regardless of slowing economy.

 

[xebay11]

the moral of the story is to be a PAP lackey, you still get the perk regardless of slowing economy.

Wrong, the moral of the story is to be a PAP lackey, you still get the perk regardless of dying economy.

 

[xingguy]

This is to soften the ground and prep for the rise of the ministers' pay.

Don't forget the scums in white mentioned during the Singapore Budget 2015, in Mar this year, that "Ministerial salaries have not risen in past three years".

 

[dancingshoes]

damn, it's all in their strategy, lackies up own salary first follow by ministars.

This is to soften the ground and prep for the rise of the ministers' pay.

Don't forget the scums in white mentioned during the Singapore Budget 2015, in Mar this year, that "Ministerial salaries have not risen in past three years".

 

[bakkuttay]

pay so much, now mobile data down today. fark singtel and that ccb chua sk.

 

[johnny333]

This is a parasite problem.

They will continue to feed & breed until the system either collapse or they are kicked out. With so many out there it is going to be hard for any future opposition to weed out all these parasites that are already in the system.

 

[dancingshoes]

pappies are the greediest scums i have ever seen.

 

[greedy and cunning]

leeches , cockroaches , rats , scorpions . locusts