Ong Beng Seng, the managing director and co-founder of Hotel Properties Limited (HPL), will be stepping down from his role due to health reasons. Ong was reported to be battling bone cancer in February this year while he was facing charges related to former transport minister S Iswaran's case.
According to HPL's latest annual report for the FY2024 ended Dec 31, 2024, Ong will also not be putting himself up for re-election at the company’s next annual general meeting (AGM) on April 29.
According to article 80 of the company’s constitution, at least one-third of HPL’s board will have to retire by rotation at every AGM. All directors will retire at least once every three years.
Ong was first appointed as managing director on March 5, 1980. His date of the last re-election was on April 28, 2022.
Three more of HPL’s directors will be retiring at the forthcoming AGM as well. Stephen Lau Buong Lik and Arthur Tan Keng Hock will both be retiring under article 80, while Rahul Goswamy will be retiring under article 70, which states that all newly-appointed directors will have to submit themselves for re-election at the next AGM. Goswamy, who was appointed on May 21, 2024, has offered himself for re-election.
Lau was last elected to HPL’s board as an executive director on April 28, 2023, while Tan was last elected as a non-executive and non-independent director on April 28, 2022.
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Remuneration
In FY2024, Ong’s total remuneration was also lowered to $670,206, down from the stated range of “between $1.75 million and $2 million” in FY2023. No exact figure was provided in HPL’s FY2023 annual report.
HPL’s group executive director, Christopher Lim Tien Lock, has also taken a pay cut. In FY2024, Tan’s remuneration stood at $1.78 million, down from the range of $2.5 million to $2.75 million in FY2023. Lau’s salary was also lowered to $1.47 million from between $2 million and $2.25 million the year before.
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In FY2024, HPL’s earnings fell by 95.1% y-o-y to $27.2 million on lower net fair value gains.
As at March 18, Ong remains a substantial shareholder of the company with a direct stake of 20.91% shares and a total stake of 39.51%. Ong is deemed to have an interest in the shares held by 68 Holdings Pte. Ltd., Comojo Holdings Pte. Ltd., Reef Holdings Pte Ltd and shares held by his spouse.
About 11.99% of HPL’s total issued ordinary shares are in public hands as at the same period.
Shares in HPL closed at $3.43 on April 11.
