Singapore non-executive directors pocketed 9.8% fee hike in 2013

Guess which sector topped the pay league.

In a report released today, global management consultancy, Hay Group, said that non-executive directors (NEDs) in Singapore listed companies received nearly double digit growth of 9.8 percent in median average fees per NED (S$56,000 per annum) in Financial Year (FY) 2012/2013, compared to the S$51,000 NEDs received in the previous FY.

The report, Board Remuneration and Practice in Singapore 2014, which examines 246 listed companies on the Singapore Exchange, provides insights into current trends in NED remuneration and board governance (board composition, structure and meetings) among listed companies.

The analysis of the report is based on data from the latest annual company reports collected as of 29 November 2013.

The multi-industry sector dominates the pay league this year, with the median average fee at S$83,000 per annum. This is followed by sectors such as finance (S$66,000), construction (S$59,000) and properties (S$59,000).

The report observed that higher requirement of directors in terms of their technical/practical expertise and the strategic integration and leadership of different business units have contributed to higher pay in the multi-industry, finance, construction and property companies in the sample companies.

Furthermore, from the lower end of the pay league, sectors such as hotels/restaurants, properties and construction are seeing a more significant fee increase, with directors in the hotels/restaurants sector receiving a 25 percent increase, those in properties receiving an 18 per cent hike and those in construction receiving a 15 per cent increase.