SINGAPORE: City Developments Limited (CDL) executive chairman Kwek Leng Beng received 13.6% less in remuneration for 2024, taking home S$5.97 million, down from S$6.91 million a year earlier. The 84-year-old executive chairman’s pay cut followed CDL’s boardroom dispute in late February, which affected the property giant’s performance and share price, The Straits Times reported, citing the firm’s annual report released on April 8.
His son, CDL group chief executive Sherman Kwek, also took a 15.4% pay cut, receiving S$2.97 million in 2024 down from S$3.52 million the previous year. He also chose to forgo a S$1.35 million long-term incentive grant for FY2023, according to The Business Times.
The cuts came during a sharp decline in CDL’s overall performance. The property giant’s net profit fell 36.6% year-on-year (YoY) to S$201.3 million, while revenue dropped by 33.8% to S$3.3 billion.
In late February, the older Mr Kwek filed a lawsuit against his son, along with a group of directors, for an alleged “attempted coup” by appointing two new directors without proper vetting by the nomination committee. The younger Mr Kwek denied it was an attempt to oust his father, saying it was to ensure CDL has the highest standards of governance.
The younger Mr Kwek pointed to his father being influenced by longtime adviser Dr Catherine Wu. However, on March 4, the older Mr Kwek announced Dr Wu’s “irrevocable resignation” as an “unpaid independent adviser” to CDL’s hotel arm Millennium & Copthorne Hotels (M&C).
However, the father and son’s feud has already done damage. VnExpress International reported that CDL’s stock declined by 12% this year, and on April 8, the stock had sunk to a 16-year low at S$4.48. CDL is also no longer Singapore’s most valuable listed property company.
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