Published March 31, 2009

A trimmer pay package for CDL's top brass

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TOP brass at City Developments Ltd (CDL), which posted a 19.9 per cent drop in net profit last year, will be receiving slightly less compensation for financial year 2008.

The listed property group's summary report for FY2008 shows that City Developments' executive chairman Kwek Leng Beng's remuneration band for that year has been trimmed by $250,000 to 'above $7.5 million and up to $7.75 million', from 'above $7.75 million and up to $8 million' for FY 2007.

His brother Kwek Leng Joo, CDL's managing director, saw his remuneration band fall by $500,000, to 'above $6.25 million and up to $6.5 million' for FY2008.

The third highest paid director at CDL, Chow Chiok Hock, received between $250,000 and $500,000 last year, unchanged from 2007. The 70-year-old will not be standing for re-election at the coming annual general meeting.

CDL did not disclose remuneration of its top executives who do not sit on the board. The group's net profit for the year ended Dec 31, 2008, fell 19.9 per cent to $581 million.

At its AGM on April 29, CDL will seek, among other things, a mandate from shareholders to issue up to 100 per cent of its issued share capital via a pro-rata renounceable rights issue, tapping new measures announced by Singapore Exchange in February to facilitate fund raising for listed issuers.

At CDL's FY2008 results briefing in February, Mr Kwek Leng Beng reiterated that CDL has no plans for a rights issue, saying: 'As far as possible, we do not think that a rights issue is the right answer to do whatever we require.'

On the stockmarket yesterday, CDL closed 33 cents lower at $4.98, a day when the Straits Times Index dropped 72.52 points to 1,673.14.