LG (NS) Ng earns at least S$16M in total before sale of NOL

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By: Forever Vagabond

Despite the mounting heavy losses of Singapore state-owned NOL over the years, which resulted in the eventual sale of NOL to the French shipping group CMA CGM, it has been found that NOL CEO LG (NS) Ng Yat Chung has been earning at least S$16 million since he took over as CEO in 2011.

Looking through the annual reports (https://www.nol.com.sg/wps/portal/nol/investorrelations/reportsandannouncements/annualreports), it was revealed that LG (NS) Ng earned at least US$2 million a year:

• 2011 – Between US$2,150,000 to US$2,299,999
• 2012 – Between US$2,500,000 to US$2,699,999
• 2013 – Between US$2,500,000 to US$2,699,999
• 2014 – Between US$2,300,000 to US$2,499,999
• 2015 – Between US$2,300,000 to US$2,499,999

According to the 2011 annual report, LG (NS) Ng joined NOL on 1 May 2011 as its Executive Director and was later appointed as the Group President and CEO on 1 October 2011. His remuneration in 2011 consists of equity incentives of 1,088,000 shares (with a value of S$1,261,144) awarded on 21 October 2011 to “compensate for the loss of benefits accruing to Ng Yat Chung by his previous employer (Temasek) prior to joining the Group”.

Taking the lower end of the salary range and including this year’s remuneration, LG (NS) Ng should be making in total of at least US$12 million or S$16 million from all these years. This is just a conservative estimate. In fact, he could be making as high as S$20 million.

Meanwhile, it has been announced by the new French owner that it had replaced LG (NS) Ng with Mr Nicolas Sartini, a 25 year veteran in the shipping line (http://theindependent.sg/lg-ns-ng-i-feel-sayang-selling-nol-away). LG (NS) Ng has been relegated as a “special adviser” to NOL.

LG (NS) Ng: I feel ‘sayang’ selling NOL away

In an interview with ST (http://www.straitstimes.com/business/companies-markets/nol-did-not-adapt-fast-enough-says-ceo), LG (NS) Ng blamed the high cost structure of NOL.

“We have made good progress in that aspect, and every year we’ve managed to reduce our losses. Unfortunately, we haven’t been able to cut costs fast enough to offset the collapse in freight rates,” he said.

He further noted that NOL’s past successes were built on being a premium service line with “significantly higher” costs than its competitors. However, he did acknowledge that the company had been “a bit slow and reluctant to change”.

NOL lost more than $1.5 billion in the last 4 years, under LG (NS) Ng, and finally Temasek was forced to sell NOL away to the French group.

And with regard to the sale of NOL, LG (NS) Ng has this to say, “Personally, it would be strange not to feel a little bit of regret, a tinge of this ‘sayang’ feeling.”

LG (NS) Ng was a former Chief of Defence Force of the SAF before joining Temasek and later, NOL as its chief in 2011. Before joining NOL, his past experience include:

• Commanding Officer, 21st Battalion Singapore Artillery
• Assistant Chief of the General Staff (Plans)
• Commander, 3rd Singapore Infantry Brigade
• Head, Joint Operations Department
• Commander, 3rd Division
• Director, Joint Operations and Planning Directorate
• Chief of Staff (Joint Staff)
• Chief of Army (2000–2003)
• Chief of Defence Force (2003–2007)
• Senior Managing Director – Temasek Holdings (2007-2011)