Posted by: donmihaihai | April 28, 2012

It is all about money

Teh Hooi Ling from BT wrote a good article call ” Pay attention to executive salary plan”.

I think Chairman of Hersing Corporation Harry Chua is expensive but while it is hard to measure, that is the pay for performance and shareholder value he created.

Two Lees of Asia Enterprise is expensive too. But I can still tahan it by saying pay for performance and consistent.

Just when I noticed that the big Lim family of Chip Eng Seng is super good at sharing the available profit, Teh Hooi Ling pointed out an even better player – Hong Fok Corporation.

After a quick look at Hong Fok Corporation, I noticed more than what is printed on the article and missing information in their annual report. I am interested in Shareholding structure, acquisition and disposal and interested person transaction. Add in share option and performance shares for some company. You hear me, Straco Corporation!

Anyway it is all about money.
Let say I own and run a private company(100%) and how should I pay myself yearly? I will pay attention to tax. I will do the best to minimise corporate and personal tax as a whole. If I have a big family, I will do the same for them, divide the pie.
What about if I own and run a public listed company? If it is all about money, the first thing is to know what the percentage of my ownership is. If I own 20% of the company, I get only 20% of declared dividends as there are lots of other shareholders. Why do I want to share with them? If I don’t want to share with them, what can I do? What will you do if you are Cheongs and Lims? Write it down and look for them in the annual report.

Lastly, I will never invest in Hong Fok Corporation as a listed company. Unfortunately as a shareholder in private company? If I am rich enough, I will seek legal way – oppression.

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