MAS: Remuneration mandate for CEOs, directors will improve investor confidence
The central bank integrated the new rule in the Code of Corporate Governance.
The Code of Corporate Governance will be revised to include SGX’s new rules such as the cap of independent director tenure to nine years and mandatory remuneration disclosure for CEOs and directors of listed firms, the Monetary Authority of Singapore (MAS) said.
In a statement, MAS said the revisions stemmed from the Corporate Governance Advisory Committee’s recommendations in September 2022.
“MAS will amend the Notice to All Holders of a Capital Markets Services Licence for Real Estate Investment Trust Management (REIT Managers) (MAS Notice SFA 04-N14) to reflect the change in remuneration disclosure requirements for directors and CEOs of REIT Managers to mandatory from comply or explain,” said MAS.
The revisions will be effective on 1 January 2025 to coincide with the implementation of SGX Listing Rules requirement.
Lim Tuang Lee, assistant managing director of capital markets at MAS, said the revisions are important to boost director diversity, improve market transparency, and heighten board renewal.
“High standards of corporate governance, characterised by strong accountability and transparency, are critical in upholding investor confidence in our capital markets,” he also said.