Nov 19, 2009
Investigate self-serving company directors
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MR HO Kwon Ping wrote an excellent piece yesterday ('Curbing the rise of the hero-CEO'). I fully agree with him that we in Singapore have mindlessly adopted one of the unsavoury traits of the Anglo-American corporate world by the glorification of our chief executive officers.
But, as Mr Ho rightly pointed out, this is often the result of 'a community of peers' who 'does not necessarily ensure the promotion of selfless values'.
However, I was surprised when he went on to relate his experience in a self-serving remuneration committee of a large public-listed company he was on.
Together with him on the committee were 'reputable chief executive officers (CEOs) of eminent companies'.
I was surprised not only by what he wrote but also because it is rare indeed for a former independent director to come out openly to reveal the 'insider values' of the company, even though he did not name it.
This remuneration committee, he said, 'became a grouping of back-scratchers'. And he was left watching 'with bemused alarm at how performance targets were lowered or stock options reset...so that management could have the same bonuses and stock options as before though the company was not doing well'.
I applaud Mr Ho for being so forthright in stating his views and relating his experience. As far as I can recall, it is the first time that someone of his stature has given a peep into this aspect of our corporate world.
Although Mr Ho might have been bemused and alarmed by what he saw as an independent director of the company, I am curious to know whether he had tried to set the wayward committee right.
I am also of the view that incidents such as the example cited by Mr Ho should be investigated by the authorities to deter self-serving company directors.
Sia Cheong Yew
Investigate self-serving company directors
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<!-- end left side bar --><!-- story content : start -->
MR HO Kwon Ping wrote an excellent piece yesterday ('Curbing the rise of the hero-CEO'). I fully agree with him that we in Singapore have mindlessly adopted one of the unsavoury traits of the Anglo-American corporate world by the glorification of our chief executive officers.
But, as Mr Ho rightly pointed out, this is often the result of 'a community of peers' who 'does not necessarily ensure the promotion of selfless values'.
However, I was surprised when he went on to relate his experience in a self-serving remuneration committee of a large public-listed company he was on.
Together with him on the committee were 'reputable chief executive officers (CEOs) of eminent companies'.
I was surprised not only by what he wrote but also because it is rare indeed for a former independent director to come out openly to reveal the 'insider values' of the company, even though he did not name it.
This remuneration committee, he said, 'became a grouping of back-scratchers'. And he was left watching 'with bemused alarm at how performance targets were lowered or stock options reset...so that management could have the same bonuses and stock options as before though the company was not doing well'.
I applaud Mr Ho for being so forthright in stating his views and relating his experience. As far as I can recall, it is the first time that someone of his stature has given a peep into this aspect of our corporate world.
Although Mr Ho might have been bemused and alarmed by what he saw as an independent director of the company, I am curious to know whether he had tried to set the wayward committee right.
I am also of the view that incidents such as the example cited by Mr Ho should be investigated by the authorities to deter self-serving company directors.
Sia Cheong Yew
