Former NKF CEO got more money than he appeared to: report
By Margaret Perry, Channel NewsAsia
SINGAPORE : Records show former National Kidney Foundation CEO TT
Durai altruistically refused to accept bonuses and salary
increments proposed to him.
But a report by auditors KPMG reveals that, whether intentionally
or otherwise, he actually received much more while appearing to
accept less.
When Mr Durai was appointed CEO in 1992 he was paid S$12,000 a
month.
His salary jumped to S$18,000 in 1995 and S$25,000 in 1997.
With both pay rises, Mr Durai had insisted on receiving less than
the S$30,000 proposed by the Executive Committee.
He also accepted smaller bonuses than he was offered.
But the report says such apparently altruistic acts
backfired.
A bonus top-up and retrospective salary increments based on his
revised pay resulted in Mr Durai getting more money than he
appeared to want to receive.
Another concern highlighted was Mr Durai's leave allowance.
It was increased in 1999 but back-dated to when he started in
1992.
He did not use all his extra days off so he cashed in the
excess.
Between May 1995 and November 2003, he received about S$350,000 in
such encashment payments.
As part of efforts to improve corporate governance, the NKF has
brought in a pay scale structure across the organisation.
This includes the CEO's position.
Said NKF Chairman Gerard Ee, "The high end, the ceiling in our
organisation for a CEO, taking into consideration all possible
allowances and bonuses, should be around S$19,000 per month. I'm
sure some people will still think that's too much and other people
in the commercial world will probably laugh and say, 'good luck to
you trying to find someone willing to work for that.'"
Mr Ee says a maximum of S$19,000 a month is high for the social
service sector but appropriate for running a growing organisation
that manages 21 dialysis centres.
But if anyone with the appropriate experience and ability comes
forward for the job and wants to accept less money, Mr Ee said he
would be happy to discuss it.
In a written response to KPMG, Mr Durai said that by rejecting the
Executive Committee's various proposed offers to increase his
salary, he ended up receiving less than he would have if he had
accepted the offer, even after taking into account retrospective
increment and bonuses.
And he pointed out that all his salary increases were discussed and
approved by the Executive Committee. - CNA /ct
