(SINGAPORE) Jade Technologies' new group president Sam Chong Keen's unusual payment model is a 'perfect fit' with the company, Mr Sam told BT yesterday in a telephone interview.
Jade, which has been hit by the departure of several key personnel recently and has seen its share price collapse 70 per cent following a botched takeover attempt, announced the resignation of former group president Anthony Soh on Monday night on 'personal grounds'.
Dr Soh's aborted takeover bid for the company is now being investigated by the Commercial Affairs Department.
Jade said that Mr Sam would be paid 20 million new shares and $1 a year for a two-year contract. The arrangement is similar to that in Mr Sam's previous job as chief executive officer of Xpress Holdings, where he was given 15 million shares and also $1 a year for a two-year rescue job. He previously filled senior positions at numerous companies including Comfort Group, Intraco, Lion Asiapac and Lion Teck Chiang.
Mr Sam told BT that there was a 'perfect fit between my remuneration model and the company because the company can reserve its valuable cash reserves to grow its business. So in this model the cash impact on the company is negligible.'
He added that from his point of view, there was 'a lot more upside compared to a dollar-based package if the company turns out well'.
He said the deal also made a lot of sense for shareholders.
Mr Sam said that a third party had brought the company and him together but declined to elaborate on the identity of the third party.
The remuneration of 20 million shares or roughly 2.06 per cent of the company's total, was arrived at on a 'willing buyer willing seller basis. Two per cent of issued capital is about right as the market practice,' Mr Sam said.
Investors were cheered by the news of a big name appointment. Jade shares rose half a cent to 8 cents yesterday on the news. It reached an intraday high of 9 cents, up 20 per cent, on volume of 57 million units. It was the day's most active stock.
This article was first published in The Business Times on April 30, 2008
