KUALA LUMPUR (March 27): Genting Singapore Ltd (GENS) yesterday clarified its executive chairman Tan Sri Lim Kok Thay received less than S$5 million (RM15.4 million) — excluding accruals — as his remuneration for the financial year ended Dec 31, 2020 (FY20).
The amount was more than a 50% reduction over the previous year, the casino operator stressed that Lim's salary did not double as the media reported earlier.
"This reduction in remuneration was a result of the group's business being badly affected by Covid-19 which resulted in the cancellation of performance shares granted in 2020 and no performance bonus being paid in respect of FY20," said GENS. The statement is a response to queries raised by the Singapore Exchange Regulation (SGX RegCo) with relation to the company's FY20 annual report.
GENS, in which Genting Bhd owns a 52.66% stake, highlighted that Lim continues to take up to 30% pay cut starting in March 2020.
In the company's FY20 Annual Report, GENS disclosed that Lim's total remuneration was in the range of S$21.25 million to S$21.5 million, compared with his total remuneration in the range of S$9.5 million to S$9.75 million disclosed in FY19.
GENS' net profit fell to S$69.2 million in FY20, nearly 90% lower against S$688.6 million in FY19.
In the same filing to SGX yesterday, GENS said that a "significant proportion" of Lim's remuneration relates to a contingent bonus of S$35 million. According to the filing, the contingent bonus is conditional upon the company being successful in its bid for a Japan integrated resort (IR), of which 50% of the bonus is due upon the company being selected by the local government as an IR operator for the city, while the balance 50% is due upon certification of the IR area by the Japan national government.
GENS also noted that none of the S$35 million bonus has been paid out to the chairman as the "conditions have not been met", thus, the company said the accrued relevant portion of this Japan Project Incentive Award "should be viewed separately", concerning the amount of remuneration received by the chairman for FY20.
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