<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Shareholder queries StarHub board's pay
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Chua Hian Hou
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->A LONE shareholder stole the show at StarHub's annual general meeting yesterday when he challenged directors about their pay.
Postgraduate student Tony Tan, 44, came to the Marriott Hotel event armed with a spreadsheet of statistics comparing the telco's margins, credit profile and share price movement and volatility with those of its smaller rival MobileOne (M1).
The former London-based investment banker told the 120 shareholders and company officials that StarHub was performing no better than M1 and asked why it was proposing to pay its 13-man board almost three times what M1 paid its 11-man board.
Mr Tan, who owns shares in both telcos, also questioned the need for such a big board.
Three directors responded to his questions, including chairman Tan Guong Ching, who said the telco had much more diversified services than M1 - broadband, pay TV, and mobile - and so StarHub needed the numbers. 'We shouldn't stint on staffing the board,' he added.
Another director, Mr Peter Seah, the head of the compensation committee, conceded that Mr Tony Tan had a compelling comparison but defended the board's remuneration as fair.
Chief executive Terry Clontz said the directors had been of great help to him and his managers, adding that the remuneration was good value for money.
After yesterday's AGM, Mr Tony Tan told The Straits Times that he was not satisfied with the answers he got and that was why he did not vote for the resolution to pay the $1 million in directors' fees.
'I'm not against paying someone well, I just want them to justify their pay,' he said, adding that he will hold on to his shares as he remains a fan of StarHub's business.
The resolution passed anyway.
Other shareholders raised concerns over StarHub's recently announced win of a government contract to install networking equipment for Singapore's upcoming broadband network.
Mr Tan Guong Ching said the telco had done its sums and was convinced that the contract will give the firm a very good rate of return.
The company will also have no problems funding the necessary capital expenditure with existing resources and lines of credit, he said. StarHub shares closed two cents down at $1.99 yesterday.
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Chua Hian Hou
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->A LONE shareholder stole the show at StarHub's annual general meeting yesterday when he challenged directors about their pay.
Postgraduate student Tony Tan, 44, came to the Marriott Hotel event armed with a spreadsheet of statistics comparing the telco's margins, credit profile and share price movement and volatility with those of its smaller rival MobileOne (M1).
The former London-based investment banker told the 120 shareholders and company officials that StarHub was performing no better than M1 and asked why it was proposing to pay its 13-man board almost three times what M1 paid its 11-man board.
Mr Tan, who owns shares in both telcos, also questioned the need for such a big board.
Three directors responded to his questions, including chairman Tan Guong Ching, who said the telco had much more diversified services than M1 - broadband, pay TV, and mobile - and so StarHub needed the numbers. 'We shouldn't stint on staffing the board,' he added.
Another director, Mr Peter Seah, the head of the compensation committee, conceded that Mr Tony Tan had a compelling comparison but defended the board's remuneration as fair.
Chief executive Terry Clontz said the directors had been of great help to him and his managers, adding that the remuneration was good value for money.
After yesterday's AGM, Mr Tony Tan told The Straits Times that he was not satisfied with the answers he got and that was why he did not vote for the resolution to pay the $1 million in directors' fees.
'I'm not against paying someone well, I just want them to justify their pay,' he said, adding that he will hold on to his shares as he remains a fan of StarHub's business.
The resolution passed anyway.
Other shareholders raised concerns over StarHub's recently announced win of a government contract to install networking equipment for Singapore's upcoming broadband network.
Mr Tan Guong Ching said the telco had done its sums and was convinced that the contract will give the firm a very good rate of return.
The company will also have no problems funding the necessary capital expenditure with existing resources and lines of credit, he said. StarHub shares closed two cents down at $1.99 yesterday.
