Director payments soak up earnings
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.