After Megat got the boot, time for dancing FGV Chairman to …
It is unprecedented in Malaysian corporate history and whether it is fair or not on the Directors, it is irrelevant and hair-splitting compared to the groundbreaking shareholders’ activism move.
Another Brick in the Wall
There was public outcry on the social media to the video of FGV’s Hari Raya gathering and Chairman Dato Wira Azhar Hamid joined dancing to the tune Gloria Gaynor’s “I will survive”.
The song is appropriate for FGV to inspire its staff after a RM1 billion net loss for FY December 2018 due to impairment and provisions. EBIT for first quaarter 2019 dropped by 19% from RM96 million to RM78 million.
Whatever Azhar said about becoming a high performance company and strategic shift, the current snap shot on CPO and strategic shift to durian may yet to be convincing.
The party-like atmosphere was in bad taste to stakeholders and Felda settlers participating in the various Felda schemes.
The land FGV is planting on are leased land from Felda. Though it does not belongs to the settlers and Felda is a government agency, FGV should take into consideration the sufferings of settlers in the Felda schemes.
The poor results of FGV impacted Felda and the business model of listing FGV to generate revenue to finance social and economic programs are affected.
With Lim Guan Eng’s reluctance to allocate funds and resisted signing approved disbursement for Felda, the settlers are financially affected.
The price of oil palm is at the low end and farmers are earning way below RM1,000 a month and as low as monthly wage level of the 1970s.
Shareholders’ activism
It may not be fair to Azhar, but the major shareholders of FGV rejected the fees for the Directors.
Azhar was willing to waive his RM600,000 Directos’ fees, but request others Directors be paid theirs’ totalling RM1.1 million. However, the compromise proposal was still rejected at the meeting.
It is unprecedented in Malaysian corporate history and whether it is fair or not on the Directors, it is irrelevant and hair-splitting compared to the groundbreaking shareholders’ activism move.
The important point here is that it is one positive step forward in shareholders activism. It is long overdue for shareholders to make their presence felt and not be “bought” by the generous food and freebies given by management at AGM/EGMs.
It did not involve the retired uncles and aunties yet, but it is hope shareholders will make their presence more and stop allowing themselves being bullied by major shareholders and told to sell their shares if they do not like how the company is run.
It is a mixed signal to re-elect the Directors but not pay them. It does put into question the ability and also the lack of sensitivity of Azhar for putting forward the proposal.
Why did Azhar not talk to the shareholders behind close door, at least the major shareholders before the proposed Directors’ fees presented at the AGM?
Azhar said he was “clueless” and did not anticipate it coming. Its quite typical of professional corporate to take things for granted.
