>> ASIAONE / NEWS / THE STRAITS TIMES / STORY

		Chua Hian Hou Fri, Feb 01, 2008 The Straits Times
Lee Hsien Yang's F&N pay package passed without fuss
AFTER some controversy surrounding Fraser & Neave (F&N) chairman Lee Hsien Yang's million-dollar pay, the company's shareholders signed his cheque without any fuss. When Mr Lee, who chaired F&N's annual general meeting (AGM) yesterday, asked shareholders to raise their hands if they opposed the proposed director's pay package, which included his own remuneration, none did so. Analysts earlier questioned a proposal to pay the 50-year-old Mr Lee $1 million a year - relatively high by Singapore standards - to act as a consultant. This was on top of a $250,000 chairman's fee. F&N later folded the amounts into a single payout.

Securities Investors Association of Singapore president David Gerald told the meeting he was 'pleased' F&N had secured Mr Lee's services and hoped the new chairman could help the company become 'a global player'.

So confident was he in Mr Lee's ability that Mr Gerald said he himself had bought F&N shares.

He was also the only one to raise a topic many felt would be the other hot potato: the $3 million paid to F&N director Nicky Tan.

Mr Tan's firm, nTan Corporate Advisory, brokered a $900 million deal in which Temasek Holdings bought F&N shares.

Mr Gerald said the fee was fair, given that Mr Tan's firm was able to get Temasek to pay for the stock at a market price, not at a lower one, as was typical with such deals.

A shareholder, Mr Ong Wai Meng, 47, meanwhile, voiced concern over the prospects of F&N's publishing business, especially its Times Bookstores chain.

Since the publishing arm contributed only about 6 per cent to F&N's bottom line, Mr Ong queried if the firm should continue in the sector, especially in light of rising rents and stiff competition.

Mr Lee, who became chairman in September, said while publishing was 'challenging', there were 'enough returns' for F&N to stay in.

He also fielded questions about the impact of rising prices of commodities like aluminium and milk on F&N's food and beverage unit.

F&N would try to hedge when possible to mitigate the effects of price fluctuations, he said. It would also try to pass on the cost to customers 'when appropriate', although there was a limit to how far this could be done.

However, that same volatility also meant meant 'good opportunities', said Mr Lee, and he was hopeful F&N would be able to secure some good investments.

F&N reported a net profit of $378.6 million for the 12 months ended Sept 30, up 18.5 per cent from a year earlier.