| The company discloses the names and remuneration of employees who are substantial shareholders of the company, or are immediate family members of a director, the CEO or a substantial shareholder of the company, and whose remuneration exceeds S$100,000 during the year, in bands no wider than S$100,000, in its annual report. The disclosure states clearly the employee's relationship with the relevant director or the CEO or substantial shareholder. |
A. Explanation
This Provision sets out the disclosures companies should make in relation to certain employees who are related to a director, the CEO, or a substantial shareholder.
There is a potential conflict of interest when substantial shareholders or family members of persons who are in positions of power are hired by the same company. While this cannot always be avoided, and without implying that there are necessarily any improprieties when this happens, this Provision states that there should be full disclosure (including the nature of the relationship) if a substantial shareholder or an immediate family member of a director, the CEO or a substantial shareholder is hired, and whose remuneration exceeds S$100,000 during the year.
The disclosure should be in bands of S$100,000. This is narrower than the $250,000 band required for the top five KMP, who are not directors or the CEO (see Provision 8.1) as it recognises that such family members may be at a lower level in the company, and a S$100,000 band is therefore more meaningful.
There is no requirement to disclose the breakdown of the remuneration of such employees as required by Provision 8.1 for directors, CEO and KMPs.
B. Practice Guidance
C. Related Rules and Regulations
D. CG Guides
- Nil.
E. Related Articles