The VSS measure was revealed in a statement by group president and CEO Zakaria Arshad in a statement last week, The Malaysian Reserve reported.
According to the statement, the affected staff are those ranked general manager and above, as part of FGV’s manpower optimisation exercise.
“This initiative has to begin from the top and it is a signal that we are making tough decisions in order to enhance the confidence of our shareholders and stakeholders,” Zakaria was quoted as saying in the statement.
He added that the company is taking some cost cutting measures as well in the meantime, including reducing the allowances for GMs, senior GMs and vice-presidents by 15%.
“This measure under the company’s cost management initiative would also apply to me,” Zakaria said.
FGV is expecting a 15% take-up rate from among the 236 senior management staff that received the offer, according to the financial publication.
The public-listed company is hopeful that the measures taken will “deliver a sustainable performance in the face of a challenging industry”
“The initiatives are in line with our strategic intent to also improve the operational and financial performance of FGV’s core business.”
However, Zakaria said the current management structure at the company would remain.
“S Palaniappan, who has almost 40 years of experience in the plantation and research and development (R&D) industry will remain as our COO of the plantation sector, in charge of palm upstream, palm downstream and R&D activities.
“Khairil Anuar Aziz is COO of sugar and logistics and others’ sector, with an added responsibility to oversee the sugar sector effective January 2018,” Zakaria was quoted as saying by TMR.
FGV has undergone some turbulent times in the past year, with Zakaria and three other senior executives being forced to go on leave in June over an internal probe on a business deal involving a subsidiary, Delima Oil Products.
Later the same month, FGV chairman Mohd Isa Samad resigned his post after meeting with Prime Minister Najib Razak.
Zakaria was back at his post last month after the internal inquiry was completed.