SINGAPORE (BUSINESS HOURS) – Raffles Education has broken down the compensation of Managing Director and Chairman Chew Hua Seng in the latest responses to the Singapore Foreign Exchange Regulator (SGX RegCo) queries.
On Friday, October 29, during a stock market filing during the lunch break, the private school operator revealed that Mr. Chew received a base salary of $ 1 million, with $ 1.8 million profit sharing, of which $ 90,000 was unfunded. This brings his total payroll and profit sharing compensation to $ 2.9 million, which was disclosed in Disclosure S164A.
SGX RegCo had queried the meter for the $ 100,000 under-provision, which was explained by $ 90,000 in profit sharing for Mr. Chew which had not been provisioned. This amount was deemed insignificant and not recognized in the incentive due to it.
On the reason why former non-executive director Liu Ying Chun was disclosed as an employee, Raffles Education maintained that Mr. Liu is an employee.
Mr. Liu participated in the policy making and planning exercises regarding the private school operator’s investments in China, in addition to serving as the chairman and legal representative of the Institute of Science and Technology of Wanbo. However, he was not part of the management team nor was he engaged in day-to-day operations.
Since Mr. Liu was seconded to the Hong Kong-listed Oriental University City Holdings (OUCHK), his main duties did not involve him in the executive functions of Raffles Education. In these circumstances, when he was appointed director, the company considered him to be a non-executive director of the company.
Raffles Education also paid Mr. Liu’s salary – rather than his employer OUCHK – because the company deemed it appropriate to bear Mr. Liu’s salary costs. This was due to Mr. Liu’s secondment and his involvement in Raffles Education’s investments in China.
Mr. Liu’s salary of $ 60,079 as general manager of OUCHK was paid by the other business unit of Raffles Education, Langfang Development Zone Oriental University City, which is a wholly-owned subsidiary of OUCHK.
The company also said that Mr. Chew made an additional $ 3.28 million in cash loans to the company in FY21 and paid back $ 6.3 million to the company in the same fiscal year. .
Shares of Raffles Education traded down 1.3% to 7.9 cents at the end of the morning trading session on Friday.