Hi, I’ll like to confirm the following to ensure I am not seeing things.
Based on the 2016 annual report the total remuneration that the directors received from page 21 I have calculated the total is 3 million as I want to be on the conservative side. On the other hand their net profit on page 41 is around 6 million after deducting one off gains. Based on the percentage the directors’ remuneration is about half of the profits which I feel is excessive.
Kindly confirm and advise if I am see things wrongly. Thanks in advance.
If you look at the remuneration table on page 21 as follow:
Lim Wee Hann, Professor Low Teck Seng & Sitoh Yih Pin took only director fees while the rest did not so their amount should be figure that you found in page 80 which is about $0.21 million.
To be conservative the following directors just assume the max remuneration as follow:
Dr Lee Hung Ming – $1 million
Dr Wong Jun Shyan – $1.25 million
Macy Thong – $0.25 million
Dr Alan Ang Jin Soon – $0.5 million
Dr Fang Seng Kheong – $0.75 million
Dr Choong Yee Fong – $1 million
By adding all the figure together including the director fee should work out around $4.96 million
You are right that the profit after exception items should be around $6m which work a ratio of 83% of their total profit based on director fee but if you divided it by revenue the percentage is only 16.1%.
Most of the time medical companies tend to pay their Doctor high salary so it may be a norm in the industry which is why the profit % is high. I think compared it with revenue is more appropriate. It is best to compare with similar player also to get a gauge how the industry is paying.
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