Genting Singapore Ltd., promoter of Singapore’s Resorts World Sentosa casino complex, has clarified that Executive Chairman Lim Kok Thay received less than SGD5 million (US$3.7 million) as his remuneration for full-year 2020, halved from the previous year.
A 2020 annual report indicated that Lim received an aggregate remuneration of between SGD21.25 million and SGD21.50 million last year, compared with a minimum pay of SGD9.50 million in 2019.
But in a March filing to the Singapore Exchange, Genting Singapore explained that a “significant proportion” of Lim’s 2020 remuneration was “attributable to an accounting accrual” that was made for the period up to December 31, 2020. That was in respect of a “contingent bonus” of SGD35 million granted to Lim in relation to the group’s plan to bid for a casino license in Japan.
The so-called “Japan Project Incentive Award” is conditional upon the company “being successful in the bid” for a Japan casino resort, with 50 percent to be paid upon the company being selected by a local government in Japan as a casino resort operator there, and the balance 50 percent upon certification by Japan’s national government of that prefecture as a host for a casino resort.
“No payment of this incentive award will be made if the company is not successful in the bid for the Japan integrated resort,” stated the casino firm.
Genting Singapore is a contender for a Yokohama casino license. It aspires to be one of three operators to establish a new legal gaming industry in the country, which approved three integrated resorts in December 2016. Depending on the success of the first trio of casino, a second phase of development could be approved after seven years. But if Genting doesn’t succeed in its bid, Lim will not receive the incentive award.
Genting said the reduction in his base earnings “was a result of the group’s business being badly affected by Covid-19 which resulted in the cancellation of performance shares granted in 2020 and no performance bonus being paid in respect of fiscal-year 2020. As of to-date, the executive chairman continues to take basic salary cut of up to 30 percent since March 2020.”
In related news, Lim plans to sell shares in Grand Banks Yachts Ltd., a Singapore-listed firm with units involved in manufacturing and selling luxury yachts worldwide. The seller is Exa Ltd, an Isle of Man firm and an indirect wholly-owned subsidiary of Genting Hong Kong. The total consideration is “payable in full and in cash at completion” of the deal, said Genting Hong Kong.
The disposal would “enable the group to offload non-core assets and investment and provide required liquidity to the group,” amid what Genting Hong Kong described as “the catastrophic Covid-19 pandemic” that “has caused an acute disruption to businesses worldwide and led the cruise and tourism industry to a sudden halt since February 2020.”
Genting Hong Kong said it anticipates an unaudited loss of at least US$1.5 billion for 2020, compared to a US$159 million loss in 2019.
“While the severity and uncertainty of Covid-19 has adversely affected our financial performance for 2020, we maintain a strong balance sheet that has been strategically built up over many years and this will ensure that we are able to cope with the unpredictability that may persist, and at the same time, continue to pursue growth,” said Lim.
