Latest Newsletter: MSWG Weekly Newsletter 20 July 2018 (English)
MESSAGE FROM THE CEO
Sapura Energy Berhad held its AGM on 18 July 2018 for its Financial Year Ended 31 January 2018.
MSWG attended the AGM and raised some issues. Other institutional investors and retail investors also raised issues. The main issue raised relates to the remuneration of the PGCEO (President/Group CEO). The issue can be better appreciated from the following perspective of alignment of management (and directors) interest with shareholders interest.
In MSWG’s pre-AGM letter to the company, we stated that there is no alignment of interest between shareholders and management.
Alignment, in the company’s instance, mainly involves looking at the remuneration of the PGCEO in the light of the performance of the company.
If we examine the financial statements, we notice that the company is not in the best of health currently. Though the future may seem bright, alignment is about current alignment based on current circumstances.