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From remuneration as a result of FV gains (but not losses) to including minority interests in its calculations, now we have a case of earning from a tragedy? Well, the EDs would probably say that they had already suffered a remuneration loss due to the company underperforming as a result of the incident. So the current remuneration increase as a result of the lawsuit compensation is "compensation" after all.
Nothing wrong on paper though and so it is correct (but probably not right).
OKP HOLDINGS: WINDFALL FROM A TRAGEDY
In May 2021, Or Kim Peow Contractors (OKPC) , a wholly-owned subsidiary of OKP, was fined $1 million for failing to take reasonable measures to ensure the safety of its workers. This was after one worker was killed and 10 others were injured when a portion of the viaduct from Tampines Expressway (TPE) to the PIE and Upper Changi Road East being constructed by OKPC collapsed. The project director was sentenced to 13 months’ jail and the project engineer got 11 months. The group managing director, Mr Or Toh Wat, was given a discharge not amounting to an acquittal in court for his three charges in relation to the collapse.
OKPC subsequently sued the consultancy firm CGP Consultants and was awarded $43.8 million in March 2023.
For the half year ended 30 June 2023 (1H2023), OKP’s gross profit decreased by 58.6% or $2.9 million, from $5.0 million for 1H2022 to $2.1 million for 1H2023. Gross profit margin fell from 9.3% to 2.9%.
The remuneration of directors of OKP trebled from $1.2 million to $3.6 million even though OKP’s operating profitability had worsened for H12023 compared to H12022. The large increase in remuneration of the directors resulted from the subsidiary winning the lawsuit against its contractors for the accident – and for which the courts had found its subsidiary guilty of failing to take reasonable measures to ensure the safety of its workers, resulting in a fine for the subsidiary, and two of its employees being sent to jail.
https://governanceforstakeholders.com/20...a-tragedy/
Nothing wrong on paper though and so it is correct (but probably not right).
OKP HOLDINGS: WINDFALL FROM A TRAGEDY
In May 2021, Or Kim Peow Contractors (OKPC) , a wholly-owned subsidiary of OKP, was fined $1 million for failing to take reasonable measures to ensure the safety of its workers. This was after one worker was killed and 10 others were injured when a portion of the viaduct from Tampines Expressway (TPE) to the PIE and Upper Changi Road East being constructed by OKPC collapsed. The project director was sentenced to 13 months’ jail and the project engineer got 11 months. The group managing director, Mr Or Toh Wat, was given a discharge not amounting to an acquittal in court for his three charges in relation to the collapse.
OKPC subsequently sued the consultancy firm CGP Consultants and was awarded $43.8 million in March 2023.
For the half year ended 30 June 2023 (1H2023), OKP’s gross profit decreased by 58.6% or $2.9 million, from $5.0 million for 1H2022 to $2.1 million for 1H2023. Gross profit margin fell from 9.3% to 2.9%.
The remuneration of directors of OKP trebled from $1.2 million to $3.6 million even though OKP’s operating profitability had worsened for H12023 compared to H12022. The large increase in remuneration of the directors resulted from the subsidiary winning the lawsuit against its contractors for the accident – and for which the courts had found its subsidiary guilty of failing to take reasonable measures to ensure the safety of its workers, resulting in a fine for the subsidiary, and two of its employees being sent to jail.
https://governanceforstakeholders.com/20...a-tragedy/