Adding that nothing could be further from the truth, the source said The Star’s report that Shahril had “staved off” a move to oust him amid alleged unhappiness over his total pay package was “laughable”.
“Especially not when 81.7% of those polled voted for him to keep his job on existing terms,” the source added.
Speaking to FMT, the source said the attempt to oust Shahril was led by the Minority Shareholder Watchdog Group (MSWG) and appeared to have the support of the Employees Provident Fund (EPF).
“The extensive quotes attributed to MSWG general manager Lya Rahman and an anonymous representative of the EPF appear designed to give the impression that major institutional investors are unhappy with Shahril, and want to oust him,” the source added.
“But that cannot be further from the truth.”
The reality is that none of the major institutional investors except EPF want Shahril out, the source claimed, adding that there were no concerns among them that his remuneration was excessive and needed to be trimmed down.
The source said under Shahril, Sapura had grown from strength to strength and was now a globally recognised multi-national company operating in 20 countries over six continents.
“70% of SEB’s business ventures take place offshore, and the company has an order book worth a whopping RM16.7 billion,” the source added.
By that token, the source said, Shahril could not be bracketed with other corporate figures leading Malaysian companies.
The source said by global standards, Shahril’s remuneration package was not excessive.
His total pay package for the financial year 2018 ended Jan 31 was reportedly RM71.92 million.
The source said Schlumberger pays its CEO US$20 million (RM80 million), while Haliburton’s CEO receives a remuneration of US$38 million (RM152 million).
The source added that Shahril’s pay package does not come without risk to himself and the company. Under a bank covenant, Sapura’s RM14 billion banking financing would be at risk if he is ousted as CEO.
Sapura, which currently sits on a reserve of 240 million barrels of oil, is also aggressively undertaking exploration activities in Mexico and New Zealand.
Sapura E&P meanwhile is on track to a listing which would make it Asia’s first independent oil company.
The source said MSWG and the EPF represented only a minority of shareholders in Sapura who were opposed to Shahril.
EPF holds a 5% stake, having reduced its stake in Sapura in recent years.
“EPF’s loss will be foreign shareholders’ gain,” the source told FMT.
“In the near future, EPF’s investment advisers will have to explain their short-sightedness in choosing to pare down their equity.
“It only shows their lack of understanding of the industry landscape and short-term portfolio re-positioning.”