SINGAPORE - ComfortDelGro executives will no longer be granted share options from this year.
"When we started the scheme 10 years ago, the agreement was that we will not exceed 15 per cent of the total issued shares in the company," chairman Lim Jit Poh said.
"But shareholders still don't like it because it leads to dilution (of their holdings)."
Indeed, when shareholders present at Friday's annual general meeting were asked to vote on a resolution to allow directors of the company "to allot and issue from time to time such number of shares in the company as may be required to be issued pursuant to the exercise of options under the ComfortDelGro Employees' Share Option Scheme", more than 49 per cent voted against the resolution.
The result was academic, as the company's last share options were granted last year. It will no longer issue options from this year.
Mr Lim said the company had no plans to replace the scheme with an alternative, such as performance shares.
According to its latest annual report, directors granted the most share options last year were chief executive Kua Hong Pak and Mr Lim. They got 1,200,000 and 240,000 options respectively.
Since the start of the scheme to Dec 31 last year, Mr Kua had been granted 12.3 million options, while Mr Lim had 2,773,577.
As at Dec 31, they each have outstanding options of 7.2 million and 1.2 million respectively.
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