|For transparency, the annual remuneration report should disclose the details of the remuneration of employees who are immediate family members of a director or the CEO, and whose remuneration exceeds S$50,000 during the year. This will be done on a named basis with clear indication of the employee's relationship with the relevant director or the CEO. Disclosure of remuneration should be in incremental bands of S$50,000. The company need only show the applicable bands.|
This Guideline requires the disclosure of the remuneration of certain employees who are related to a director or the CEO.
There is a potential conflict of interest when family members of persons who are in positions of power are hired into the same company. While this cannot always be avoided, and without implying that there are necessarily any improprieties when this happens, the Guideline requires that there be full disclosure (including the relationship with the director/CEO) if an immediate family member of a director or the CEO is hired, and whose remuneration exceeds S$50,000 during the year.
The disclosure is required in bands of S$50,000. This is a narrower band than the $250,000 band required for the top five Key Management Personnel (KMP), who are not directors or the CEO (see Guideline 9.3). This recognises that such family members may be at a lower level in the company, and a $50,000 band is therefore more meaningful.
There is no requirement for a disclosure of the breakdown of the remuneration of such employees as required by Guidelines 9.2 and 9.3 for directors and KMPs.
B. SGX Disclosure Guide
- Is there any employee who is an immediate family member of a director or the CEO, and whose remuneration exceeds S$50,000 during the year? If so, please identify the employee and specify the relationship with the relevant director or the CEO.
C. Related Rules and Regulations
D. CG Guides
E. Related Articles
- “Proposed SCCG changes to disclosure of remuneration – will the challenge be taken up?” by Victor Yeo. (86KB)