Singapore Exchange Regulation on April 22 proposed new disclosure rules that would require listed companies to spell out the key performance indicators used to set executive pay and explain how they link to long-term shareholder value. SGX Regulation CEO Tan Boon Gin said, "There is room for disclosure requirements to level up." [1]
The consultation also calls for annual report disclosure of dividend policies, a website for each company and an investor relations policy to support regular two-way communication with shareholders. The regulator said the aim is to raise corporate transparency and boost shareholder value. [1]
At present, listed companies must disclose only the remuneration of directors and chief executives in their annual reports. SGX said the wider rules would bring more detail to how boards reward senior management and how firms communicate capital returns to investors. [1]
The exchange said about two-thirds of the largest issuers on SGX do not disclose an investor relations policy or dividend policy, and two-thirds do not disclose metrics tying remuneration to long-term value performance. It also noted concerns that tighter disclosure rules could strain smaller firms with thin margins, though it described those concerns as weak and often repeated. [1]
The public consultation opened on April 22. SGX Regulation has not given a date for final rules, and the current proposal remains open for comment. [1]
