[SINGAPORE] City Developments Ltd (CDL) group chief executive officer Sherman Kwek has voluntarily forgone his long-term incentive grant of S$1.35 million for financial year 2024, based on CDL’s annual report released on Tuesday (Apr 8).
He received S$2.97 million in total compensation for FY2024, a decrease of 15.4 per cent from S$3.52 million in the prior year.
For FY2024, fixed salary accounted for 33.3 per cent of his total compensation, short-term incentives accounted for 59.6 per cent, board and committee fees constituted 4.2 per cent, with the remaining comprising other benefits.
In comparison, for FY2023, fixed salary accounted for 28.1 per cent, short-term incentives accounted for 65.6 per cent, board and committee fees constituted 3.6 per cent, with the remaining comprising other benefits.
In addition to the remuneration of S$3.52 million, Sherman Kwek was also awarded a long-term incentive grant of S$1.35 million for FY2023. The final payment to be vested is contingent on the achievement of the predetermined targets over a three-year performance period, which ranges from 0 to 200 per cent of the award.
For FY2024, executive chairman Kwek Leng Beng received S$5.97 million in total compensation, a decrease of 13.6 per cent from S$6.91 million in the prior year.
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In February, the property player reported a profit of S$113.5 million for its second half ended December, down 54.7 per cent from S$250.8 million in the previous corresponding period.
For the full year, CDL’s net profit sank 36.6 per cent to S$201.3 million from S$317.3 million in the year-ago period.
The declines were driven primarily by its property development segment, which recorded “substantially lower contributions” for FY2024, with its revenue contracting 66.4 per cent to S$939.4 million from S$2.8 billion in FY2023.
In his CEO statement in the annual report, Sherman Kwek noted that 2024 had been a year of formidable headwinds, with macroeconomic pressures and sector-specific challenges weighing on the group’s near-term earnings and portfolio calibration plans.
He highlighted that prudent capital management and strong investment discipline remain as key tenets of the group.
“We will strategically deploy funds for new investments while accelerating divestments to recycle capital,” he said.
For the second half of this year, CDL plans to launch an integrated mixed-use development in Zion Road, with its joint-venture partner Mitsui Fudosan.
The development is set to comprise two 62-storey residential towers with 706 units, a retail podium on the first storey and a 36-storey tower with 373 serviced apartment units.
CDL’s annual report release comes amid the controversy over two new directors who joined the board. The conflict centred on the appointments of Jennifer Duong Young and Wong Su-Yen on Feb 7, which the elder Kwek said were “irregularly and hastily” made, without going through proper procedures.
The annual general meeting on Apr 23 will be the first time shareholders have a chance to ask questions since the announcement on Mar 12, 2025, when Kwek Leng Beng decided to drop the legal action related to the contested appointments.
Perhaps alluding to the concerns of shareholders over the controversy, the younger Kwek noted in his CEO statement: “Our pledge to the highest standards of corporate governance and transparency is the group’s guiding principle as we work to rise above challenges. We will continue to embed these practices in our operations and decision-making processes, prioritising the interests of all stakeholders with the aim of maximising value.
Shares of CDL were down 0.9 per cent or S$0.04 at S$4.48 before the midday trading break on Tuesday.
