SingPost's ex-CEO saw pay rise to $2.78 million last year

Singapore Post's former chief executive Wolfgang Baier received a pay rise last year, according to the firm's annual report out yesterday.

Dr Baier, who resigned last December, received $2.78 million in remuneration for the 12 months to March 31 - nearly double the $1.43 million he got in the previous year.

His pay packet included a base salary of $860,300, slightly lower than the $884,000 previously. But more notable was the bonus, which almost quadrupled from $450,000 to $1.78 million.

He was also awarded three million shares worth $542,400 under SingPost's share option scheme, although these have been cancelled.

Dr Baier is helping the firm with the transition until around the end of the month.

The annual report also showed that former chairman Lim Ho Kee, who stepped down on May 10, received $316,100 in directors' fees and benefits, up 1.8 per cent on the $309,100 in the year earlier.

Chief operating officer Sascha Hower - who announced his resignation on Tuesday, the latest in a series of surprise high-level departures - received a pay cheque of between $500,000 and $750,000.

Concerns over SingPost's leadership, coupled with ongoing Accounting and Corporate Regulatory Authority investigations over possible breaches of the Companies Act, have rocked the company's shares since late last year.

The stock, which closed at $1.505 yesterday, has fallen 18.3 per cent in the past 12 months and is down 8.2 per cent this year.

Maybank Kim Eng analyst John Cheong noted that the departure of Dr Hower - who is also chief executive of Quantium Solutions, the global arm for SingPost's e-commerce logistics business - could spell further trouble for SingPost, as it could prompt Alibaba to re- evaluate its proposed acquisition of a 34 per cent stake in Quantium Solutions as part of their joint venture.

"In less than a year, three senior executives have resigned," said Mr Cheong, who maintains a contrarian "sell" call on the stock.

"To make matters worse, competition in Singapore could intensify with rivals turning more aggressive and the Government levelling the playing field."

tsjwoo@sph.com.sg

This article was first published on June 23, 2016.
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