The new measure will be effective on or after 31 December 2024.
To increase transparency, the bourse declared that Singapore-listed companies will be required to publish the exact amount and breakdown of remuneration paid to directors and the CEO.
In a statement, SGX RegCo said annual reports should contain “base or fixed salary, variable or performance-related income or bonuses, benefits in kind, stock options granted, share-based incentives and awards, and other long term incentives.”
“Whilst concerns about competition, sensitivity and privacy were raised during the consultation, market participants largely supported the proposal for issuers to disclose the exact amount and breakdown of remuneration paid to directors and the CEO in their annual reports,” read the statement.
The new rule will begin on or after 31 December 2024. Such a measure will inform investors that the directors and CEOs are correctly incentivised, SGX said.
Cap on long serving IDs
The bourse also limited the tenure of independent directors (IDs) to nine years to prevent problems on board diversity. The IDs whose tenure surpassed the nine-year cap will continue until the issuers general meeting held for the year on or after 31 December 2023.