SingPost halves sacked CEO Vincent Phang’s pay to $616,400

SINGAPORE – Former Singapore Post group chief executive Vincent Phang, who was dismissed over the mishandling of a whistleblower complaint, received $616,400 in remuneration for the financial year ended March 31, the company’s latest annual report disclosed.

It did not indicate if Mr Phang, who was fired by SingPost on Dec 21, had his salary pro-rated. He had received about $1.2 million in the previous financial year.

According to the annual report released on June 24, the payout comprised $570,600 in fixed salary, $10,500 in provident fund contributions and $35,200 in benefits. The company’s benefits generally include medical and flexible allowances, as well as other perks such as car allowance and long service awards, where applicable.

Fired along with Mr Phang was former group chief financial officer Vincent Yik, and former chief executive of SingPost’s international business unit, Mr Li Yu, after the top executives were found to be negligent in the handling of the internal investigations over a whistleblower’s report.

The exact remuneration for Mr Li was not disclosed in the report. Instead, he was broadly categorised under the $250,000 to below $500,000 salary band, with the stated amount covering his remuneration from April 1 to Dec 21 in 2024. 

As for Mr Yik, his pay was not reported individually. Instead, the annual report stated that an aggregate of about $950,000 was paid to him and Mr Shahrin Abdol Salam, SingPost’s former Singapore CEO, who resigned in February – less than a year after taking up the role on May 1, 2024.

The annual report also disclosed that total compensation paid to SingPost’s non-executive directors exceeded $1.3 million.

Of this, $288,600 went to outgoing chairman Simon Israel, while nine others received between $10,100 and $176,000 each.

The report also noted that Mr ­Israel, 72, declined an ex-gratia payment of $250,000 proposed by the board “in recognition of the extra time and effort” he expended during SingPost’s leadership transition.

Mr Israel, who has chaired the board for nine years, will be succeeded by Ms Teo Swee Lian, 65, following SingPost’s annual general meeting on July 23, when five directors, including Ms Teo, will also be seeking re-election.

Both Ms Teo and Mr Phang, who stepped down as a non-executive, non-independent director with effect from Jan 12, were not listed among the directors who received board compensation.

Mr Phang’s replacement has yet to be announced by the postal service provider.

What’s next

While acknowledging the challenges of the past year, Mr Israel signalled a forward-looking shift for SingPost as it prepares for a new phase of transformation under fresh leadership.

Despite booking a net profit of $245.1 million, boosted by the one-off divestment of its Australia business, the group saw its underlying net profit fall 40.3 per cent to $24.8 million, with a net loss of some $500,000 in the second half.

Mr Israel described these figures as evidence of the “persistent pressures facing the group” and the need for decisive restructuring.

Looking ahead, he warned that the operating environment is likely to remain volatile. But he emphasised that SingPost has taken steps to reset its cost base and streamline operations, including the reintegration of its international cross-border business into the Singapore unit to unlock synergies.

To support future growth, the group is betting on automation and e-commerce logistics. 

A $30 million investment has been committed to scaling up its Regional eCommerce Logistics Hub, which will eventually handle up to 400,000 parcels daily – a threefold increase in capacity.

But the domestic postal business remains under strain, with discussions ongoing between SingPost and the Government on how to ensure the long-term financial viability of postal services, including its Post Office Network.

Nevertheless, Mr Israel said that SingPost is undertaking a “strategic reset” which will be finalised after a new group CEO is appointed. “Upon conclusion, the board will set out the new strategy for all stakeholders,” he added.

Shares of SingPost rose 1.7 per cent, or one cent, to close at 61.5 cents on June 26.

THE BUSINESS TIMES