Public Bank pays final RM20m remuneration to late founder Teh Hong Piow

KUALA LUMPUR (May 15): Public Bank Bhd’s shareholders have voted in favour of the group’s final remuneration of RM20 million, together with various benefits in kind, to its late founder Tan Sri Teh Hong Piow, in appreciation and recognition of his contribution to the country’s third largest bank by asset size.

The benefits in kind included a company car, medical coverage and other claimable benefits.

Public Bank’s stock exchange filing on Monday (May 15) showed that the resolution was passed with 1,931 shareholders voting for it, representing 75% of total votes, while 1,178 shareholders holding 25% of the votes opposed it.

It was the resolution that saw the highest number of shareholders voting against it during the group’s virtual annual general meeting on Monday, compared with the other five resolutions, which were opposed by between 274 and 379 shareholders.

Teh served as the group's chairman emeritus, director and adviser until his demise on Dec 12 last year, about three weeks before the end of Public Bank's financial year, leaving behind a banking group that is widely known for its efficiency, profitability and value accretion to shareholders.

Teh, who founded Public Bank in 1965, had been managing the bank himself before relinquishing his chief executive officer position and was redesignated the bank's non-executive chairman in July 2002.

He retired as non-executive chairman by the end of 2018 but remained as the group's non-executive director. He was getting RM20 million as remuneration annually since 2019, when he was conferred the twin titles of chairman emeritus and adviser.

Teh, who controlled 23% in Public Bank prior to his passing, was getting more before his retirement in end-2018, when he got RM40.88 million for his work that same year, and RM30.7 million in 2017.

The late legendary banker’s shareholding remained untouched according to the group's latest disclosure. Teh has four children — William Teh Lee Pang, Lillian Teh Li Ming, Dr Lillyn Teh Li Hua and Diona Teh Li Shian. His wife, Puan Sri Tay Sock Noy, passed away about four months before him in August last year.

Teh was one of the few remaining individual shareholders of local banks — such as Hong Leong Bank Bhd’s Tan Sri Quek Leng Chan and AMMB Holdings Bhd’s Tan Sri Azman Hashim — who were allowed to own a stake larger than 10% under the Financial Services Act, as their ownership were accumulated before the law came into force in 2013.

Shares of Public Bank closed three sen or 0.76% lower at RM3.94 on Monday, giving it a market capitalisation of RM76.48 billion.

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