Right to reply for Santa Musa

Sime Darby issued a statement with regard to our posting yesterday, "What is Santa Musa up to?"

The Star reported on it today:

Sime denies blogs’ postings

PETALING JAYA: Sime Darby Bhd is refuting allegations on certain blogs that its proposed long-term incentive plan would only benefit two individuals.

In a statement, the conglomerate said it took a serious view of these baseless accusations and the inferences therein and will take appropriate action to protect the reputation of the organisation.

“The two blogs and the comments posted have caused embarrassment to the chairman, board of directors and senior management of Sime Darby.

“The blogs posted on the performance-based employee share scheme are misinformed and reflect the lack of appreciation and understanding of industry practices on performance-based reward schemes,” it said.

It added that Sime Darby was not the first organisation in Malaysia to implement such a performance-based share scheme as other companies like Axiata, Bursa Malaysia and Maybank had implemented similar schemes earlier.

It also said an official from Sime Darby had contacted one of the bloggers and informed him of his mistakes.

“Despite having notified him of his errors the previous day, he has yet to correct the offending post or remove it, which suggests that his intentions are malicious, vexatious and mischievous. The post has attracted undue attention and perpetuated his mistaken assumptions,” it said.

Responding to the accusations, it said an EGM on Nov 8 would be held to seek approval for the performance-based employee share scheme, aimed to reward and motivate employees based on their performance.

“For employees working in Malaysia, executives of all grades, including the executive directors, will be eligible to participate in the proposed scheme.

“For employees based outside Malaysia, executives of job grade VP II and above will be eligible to participate,” it said.

In the case of the president and chief executive, it said the scheme allowed for the granting of a maximum of three million shares over the 10-year scheme period.

“This number of shares will be vested on a staggered basis and only in the event of exceptional performance both at individual and enterprise level for the 10 years and subject to fulfillment of stringent performance-based conditions.

“The shares will only be vested in the grantee three years after the grant, subject to vesting conditions,” it said.

On accusations that only two employees have been nominated for the scheme Datuk Bakke Salleh for three million shares and Nur Tania Yusof for 200,000 shares it said that under the listing requirements, separate resolutions were required to be passed by shareholders to approve the grants of shares to Bakke as the executive director and Nur Tania being a person connected to a director of Sime Darby.

“It is wrong to suggest that these two individuals are the only two who will benefit from the proposed scheme,” it said.

In the spirit of the right to reply, the following is the full statement from Leela Barrock, Group Head, Communications and Corporate Affairs, Sime Darby Berhad secured from sources:

For Immediate Release
Friday, 19 October 2012

False and erroneous allegations made against the Chairman, Board of Directors and senior management of Sime Darby

Sime Darby is responding to certain allegations and accusations that have recently been posted on certain blogs with regard to a proposed long term incentive plan for eligible employees of the Group. The information contained in these blogs is wrong and thus the opinions posted are not founded on fact. The proposed performance-based employee share scheme is still subject to the approval of shareholders at general meeting.

The two blogs and the comments posted have caused embarrassment to the Chairman, Board of Directors and the senior management of Sime Darby. The company takes a serious view of these baseless accusations and the inferences therein and will take appropriate action to protect the reputation of the organization.

An official from Sime Darby has contacted one of the bloggers and informed him of his mistakes. Despite having notified him of his errors the previous day, he has yet to correct the offending post or remove it, which suggests that his intentions are malicious, vexatious and mischievous. The post has attracted undue attention and perpetuated his mistaken assumptions.

A summary of the erroneous statements and the actual facts is listed below:

Other facts

• In the case of the President and Chief Executive, the proposed performance-based employee share scheme allows for the granting of a maximum of 3 million shares over the 10-year scheme period. This number of shares will be vested on a staggered basis and only in the event of exceptional performance both at individual and enterprise level for the 10 years and subject to fulfillment of stringent performance-based conditions. The shares will only be vested in the grantee three years after the grant, subject to vesting conditions. These criteria will apply to all eligible grantees.

• The Board has built in safeguards into the process that will ensure that the interests of the company and its shareholders are at all times safeguarded.

The blogs posted on the performance-based employee share scheme are misinformed and reflect the lack of appreciation and understanding of industry practices on performance-based reward schemes.

For further information please refer to the Bursa Malaysia Website for Sime Darby’s circular to shareholders dated 16 October 2012 or contact:

Leela Barrock
Group Head, Communications and Corporate Affairs
Sime Darby Berhad
Tel: (603) 2698 7669
Fax: (603) 2698 0645
E-mail: leela.barrock@simedarby.com 

 Anyone saw those details in their communiques to the public and shareholders?

Our comment to ensue. In the meanwhile, digest the above first.