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(SINGAPORE) The Singapore Exchange's (SGX) incoming chief executive Magnus Bocker will get at least S$6.8 million when he joins in December, the company said yesterday.
The sum comprises S$750,000 in annual salary, at least S$933,000 in guaranteed bonus for the seven months to June 2010, and S$4.77 million to compensate him for lost bonuses and incentives at his present job, part of which sum will be paid in instalments. He will also receive a yearly grant of performance shares based on preset targets for return on equity and shareholder return.
Mr Bocker - currently president of American exchange operator Nasdaq OMX - will also get S$300,000 a year in housing allowance, falling to S$150,000 in the final year of his three-year contract, plus relocation costs of S$100,000. He will also be given club membership and a car and driver, SGX said. In 2008, he was paid US$3.2 million as president of Nasdaq OMX.
Jacqueline Wong, head of residential at property consultancy Jones Lang LaSalle, said the housing package was 'reasonable' for the position but fairly high as a proportion - 40 per cent - of the base salary. Mr Bocker could rent a good class bungalow or a top apartment at the likes of Draycott 8 and Ardmore Park and still have change left over, she said.
The new CEO's package, if it approximates his predecessor Hsieh Fu Hua's average paycheck, should put him comfortably among the top earners in the industry.
Mr Hsieh received S$7.18 million in the year to June 2008, and a total of S$23.5 million since he took charge in March 2003 - an average of S$4.6 million a year, excluding gains from options and shares granted. His pay for the latest financial year has not been disclosed.
Nasdaq OMX CEO Robert Greifeld was paid US$11.5 million in 2008 and NYSE Euronext chief Duncan Niederauer received a US$9.3 million package. But Hong Kong Stock Exchange's Paul Chow received just HK$12.7 million (S$2.4 million), while in Europe, Deutsche Boerse's Reto Francioni got 2.79 million euros (S$5.72 million) and the London Stock Exchange's former CEO Clara Furse, who stepped down in May, was paid £pounds;1.34 million (S$3.17 million).
SGX is among the most profitable exchanges but lags its peers in terms of trading volume of derivatives and equities as well as number and market cap of its listed companies. SGX declined to reveal details of Mr Bocker's key performance indicators, which are used by the board to determine annual bonuses.
Mr Bocker was appointed on Monday to replace Mr Hsieh after a two-year search. He spent more than 20 years with Scandinavian exchange operator OMX, rising to become its CEO in 2003 and building it into Europe's fifth-largest stock exchange. In 2007, he masterminded its US$3.7 billion merger with Nasdaq to create Nasdaq OMX.
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