Sapura Energy's board drops Shahril from remuneration committee, adds two new members

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KUALA LUMPUR (July 27): Sapura Energy Bhd's president and group chief executive officer Tan Sri Shahril Shamsuddin is no longer part of the group's board remuneration committee after a revision of the composition today.

In a filing with Bursa Malaysia, Sapura Energy announced that subsequent to the revision, the board remuneration committee will now consist of chairman Datuk Hamzah Bakar, who is also a non-independent non-executive director, and three other independent non-executive directors, namely Mohamed Rashdi Mohamed Ghazali, Datuk Muhamad Noor Hamid and Datuk Ramlan Abdul Rashid.

According to Sapura Energy's annual report for the financial year ended Jan 31, 2018 (FY18), the original remuneration committee comprised Hamzah, Shahril and Mohamed Rashdi.

Shahril's remuneration package, which amounted to RM71.9 million in loss-making FY18, has been a hot issue last week, particularly during Sapura Energy's annual general meeting (AGM).

Sapura Energy incurred a net loss of RM2.5 million in FY18.

During the AGM, the Employees Provident Fund voted against the re-election of all Sapura Energy's directors including Shahril, as it deemed the pay package excessive.

Shahril, on the other hand, explained that his salary was partly boosted by a covenant that locked up his 16% stake in Sapura Energy when bankers refinanced the group's RM16 billion borrowings.

Sapura Energy's share price fell 0.5 sen or 0.82% to 60.5 sen today, giving it a market capitalisation of RM3.6 billion.