Executive pay transparency discussed in Singapore

Companies in Singapore have been urged to make their executive pay policies more transparent.

At a recent business forum in the island nation, corporate governance experts discussed issues such as a company's responsibilities to its shareholders when agreeing remuneration packages, the Straits Times reports.

Lee Suet Fern, senior director of legal firm Stamford Law, suggested some chief executives may believe the size of their organisation entitles them to a certain level of compensation.

She said a factor such as this should be considered, but must not be the "chief determinant" of an executive's pay packet.

"Chief executives are providing an important management and leadership role, but the capital at risk is that of shareholders," Ms Lee explained.

Singapore was ranked at number one out of 11 markets in this year's CG Watch survey from the Asian Corporate Governance Association (ACGA)

It reclaimed the top spot from Hong Kong, which scored 65 per cent on the ACGA's index to Singapore's 67.