By Yang Huiwen

Noble Group chief executive Richard Elman has missed out on bonuses worth about $15 million after the company axed a plan to issue him with up to 10 million new shares.

Vice-chairman and executive director Harindarpal Singh Banga, also known as Harry Banga, was denied stock as well, in his case about six million shares.

The Hong Kong-based commodities supplier told the Singapore Exchange last night that it had decided not to proceed with the proposed share issues, but no reasons were given.

Noble's spokesman could not be reached for comment by telephone yesterday and did not reply to e-mail queries.

At yesterday's closing price of $1.52, Mr Elman's new shares would have been worth about $15.2 million, and Mr Banga's about $9.13 million.

The shares were meant to be part of the total bonuses payable to the executives for the financial year ended December 2007.

Its latest annual report explained how Noble's remuneration committee addresses executive pay.

'The committee reviews all matters concerning the remuneration of senior management, including the bonus schemes,' it said. Their remuneration proposals are then recommended to shareholders for approval at the annual general meeting.

The exact pay of Mr Elman, Mr Banga and other key executives was not disclosed in the report. The company argued that such information was 'sensitive'.

Noble, which supplies commodities such as coffee, sugar, coal and steel, paid its 11 directors a total remuneration of US$32.63 million (S$46.8 million) last year, almost double what it paid its 12 directors in 2006.

Last year's amount included the pay of Mr Elman and Mr Banga.

The cancellation of the two share issues - a total of about $24.3 million - means Noble is unlikely to record a large increment in its directors' remuneration in this year's annual report.

Noble stock has fallen 39.2 per cent in the past three months on concerns that growth in global demand for raw materials and commodities may slow further.

The stock closed 9 cents, or 6.29 per cent, up at $1.52 yesterday.

This article was first published in The Straits Times on September 13, 2008.