Director payments soak up earnings

PUBLISHED : Wednesday, 02 August, 1995, 12:00am
UPDATED : Wednesday, 02 August, 1995, 12:00am

DIRECTORS' emoluments at Van Shung Chon more than doubled in the year ending March 31, despite a 23.96 per cent rise in attributable profits and a decline in fully diluted earnings per share.

Earnings were boosted by a bonus scheme linking part of the emolument package to five per cent of profits.

The executive directors are chairman Yao Shu-sheng, his brother, his son and his daughter and also include Dong Yuen-jih and his son.

The group's annual report said 1995 executive director emoluments rose 136 per cent to $5.95 million.

This compared with attributable profit in the period of $54.37 million, making executive director emoluments almost 11 per cent of total profits.

Fully diluted earnings per share were 18.7 cents, down 17.6 per cent.

Executive directors were paid $2.94 million in basic salaries and allowances compared to $2.52 million in 1994, up 16.66 per cent.

A bonus scheme gave executive directors five per cent of the group's consolidated profit attributable to shareholders. This amounted to $2.7 billion and no like payment was made in 1994.

The five highest paid employees of the company were all directors.