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http://news.asiaone.com/News/The+Business+Times/Story/A1Story20090403-132999.html
No secrets about SMRT salaries
Fri, Apr 03, 2009
The Business Times
'TRUST is a very important word to our organisation,' says Saw Phaik Hwa, SMRT Corporation's president and chief executive.
As a core value, trust steers SMRT's corporate governance practices, particularly in the areas of disclosure and transparency. 'If you have murky and grey areas, I don't think that trust exists,' she says.
SMRT is ranked second on the new Governance and Transparency Index, thanks in part to high scores in disclosures, in terms of both transparency on remuneration matters and timely notices to shareholders.
'A lot of people are secretive about salaries,' says Ms Saw. But their reasons do not persuade her that pay should remain private. 'I ask people, 'Why are we afraid to disclose salaries?' And they'll say, 'Because then, your competition may snatch your best people.' But I say, if it's only because of the money that they're working for me, then they can go somewhere else! They must love this company so much that they'll stay even if other people give them a few dollars more,' she says.
The remuneration packages of SMRT's five top earning executives are revealed, in bands of $150,000, in its annual report. These are narrower than the Code of Corporate Governance's recommended bands of $250,000 for top executives' pay. For each executive, the breakdown in percentages of the forms of payment - salary, benefits, stock options - is also made public.
Fees paid to SMRT's directors are also spelt out to the dollar in the annual report. In Ms Saw's case, this includes the precise sums under each category of payment.
'I think disclosure is very important . . . deliberate omission is as sinful as telling a lie sometimes,' she says.
Transparency also demands a timely release of information. When it comes to information which affects the company's financial health or impacts stakeholders, Ms Saw says: 'One, you must tell them, and two, you must come up front and say it. Give all the good reasons, so that people don't speculate and give the wrong reasons.'
In her view, there is no conflict between running a business competitively and maintaining transparency. 'It's quite clear where the line is drawn - these things you must say, these things you don't say,' she says.
'People are reasonable, they don't expect you to reveal chapter and verse of all your negotiations and cause you to lose business. But where you can and should tell, you must,' she adds.
Communication with investors is important to SMRT, Ms Saw notes, 'because they put their money with us; it's a responsibility we have'.
SMRT has a comprehensive website, which includes a list of all the analysts covering the company. Its avenues for shareholders to engage management include face-to-face meetings for those based overseas who happen to pass through town and wish to meet them.
Transparency and accountability are key to SMRT being able to discharge its responsibilities to its three main stakeholders - the two million customers it serves each day, the government with its new transport plan and pricing regulations, as well as shareholders, Ms Saw explains.
'How do you put it all in a pot and make it work? I think it's a fact that we've been able to do it because all our stakeholders know exactly what we're doing.'
Accountability at SMRT is strengthened by having a strongly independent and diverse board of directors. With the exception of Ms Saw, all eight other members of SMRT's board are independent.
'They're all their own men and women, looking at things from a duty, responsibility point of view. And I think there is little or no reason for any hidden agenda,' she says.
The board's nomination committee also chooses directors based on how their skills, capabilities and experience complement the other directors', and board membership is renewed by elections every three years.
Although the spirit of corporate governance is already very much a part of SMRT's culture, Ms Saw says the company still follows developments in best practices very closely. 'When any new code or guidance comes out, we review them. Anything that's compulsory, we either implement earlier or go one level up and do more than the standards require.'
SMRT also engages experts to explain each new set of guidelines and the underlying reasoning.
Corporate governance is 'never about just mouthing it', says Ms Saw. 'You can't do it half way. Either you really believe in it and carry through with it, or you don't. And for us, the don't is just not possible.'
Taking action means more than mere checkbox ticking, she adds. 'When you do it blindly you may not deliver what is intended to be delivered.'
No secrets about SMRT salaries
Fri, Apr 03, 2009
The Business Times
'TRUST is a very important word to our organisation,' says Saw Phaik Hwa, SMRT Corporation's president and chief executive.
As a core value, trust steers SMRT's corporate governance practices, particularly in the areas of disclosure and transparency. 'If you have murky and grey areas, I don't think that trust exists,' she says.
SMRT is ranked second on the new Governance and Transparency Index, thanks in part to high scores in disclosures, in terms of both transparency on remuneration matters and timely notices to shareholders.
'A lot of people are secretive about salaries,' says Ms Saw. But their reasons do not persuade her that pay should remain private. 'I ask people, 'Why are we afraid to disclose salaries?' And they'll say, 'Because then, your competition may snatch your best people.' But I say, if it's only because of the money that they're working for me, then they can go somewhere else! They must love this company so much that they'll stay even if other people give them a few dollars more,' she says.
The remuneration packages of SMRT's five top earning executives are revealed, in bands of $150,000, in its annual report. These are narrower than the Code of Corporate Governance's recommended bands of $250,000 for top executives' pay. For each executive, the breakdown in percentages of the forms of payment - salary, benefits, stock options - is also made public.
Fees paid to SMRT's directors are also spelt out to the dollar in the annual report. In Ms Saw's case, this includes the precise sums under each category of payment.
'I think disclosure is very important . . . deliberate omission is as sinful as telling a lie sometimes,' she says.
Transparency also demands a timely release of information. When it comes to information which affects the company's financial health or impacts stakeholders, Ms Saw says: 'One, you must tell them, and two, you must come up front and say it. Give all the good reasons, so that people don't speculate and give the wrong reasons.'
In her view, there is no conflict between running a business competitively and maintaining transparency. 'It's quite clear where the line is drawn - these things you must say, these things you don't say,' she says.
'People are reasonable, they don't expect you to reveal chapter and verse of all your negotiations and cause you to lose business. But where you can and should tell, you must,' she adds.
Communication with investors is important to SMRT, Ms Saw notes, 'because they put their money with us; it's a responsibility we have'.
SMRT has a comprehensive website, which includes a list of all the analysts covering the company. Its avenues for shareholders to engage management include face-to-face meetings for those based overseas who happen to pass through town and wish to meet them.
Transparency and accountability are key to SMRT being able to discharge its responsibilities to its three main stakeholders - the two million customers it serves each day, the government with its new transport plan and pricing regulations, as well as shareholders, Ms Saw explains.
'How do you put it all in a pot and make it work? I think it's a fact that we've been able to do it because all our stakeholders know exactly what we're doing.'
Accountability at SMRT is strengthened by having a strongly independent and diverse board of directors. With the exception of Ms Saw, all eight other members of SMRT's board are independent.
'They're all their own men and women, looking at things from a duty, responsibility point of view. And I think there is little or no reason for any hidden agenda,' she says.
The board's nomination committee also chooses directors based on how their skills, capabilities and experience complement the other directors', and board membership is renewed by elections every three years.
Although the spirit of corporate governance is already very much a part of SMRT's culture, Ms Saw says the company still follows developments in best practices very closely. 'When any new code or guidance comes out, we review them. Anything that's compulsory, we either implement earlier or go one level up and do more than the standards require.'
SMRT also engages experts to explain each new set of guidelines and the underlying reasoning.
Corporate governance is 'never about just mouthing it', says Ms Saw. 'You can't do it half way. Either you really believe in it and carry through with it, or you don't. And for us, the don't is just not possible.'
Taking action means more than mere checkbox ticking, she adds. 'When you do it blindly you may not deliver what is intended to be delivered.'
