Singapore's family-run companies are failing to provide adequate transparency around executive compensation, a new study reveals. National University of Singapore researchers found that about three-quarters of executive directors are substantial shareholders or family members, with these directors typically receiving higher pay.

The study reviewed 469 Singapore-listed firms and found that while executive compensation disclosure has improved, most companies still withhold specific performance metrics used to determine annual bonuses. Mak Yuen Teen, the lead author, noted that remuneration for key management personnel related to substantial shareholders remains particularly opaque.

Singapore has been tightening corporate governance rules in recent years, including director tenure limits and enhanced pay disclosure requirements. The NUS report recommends allowing only non-executive directors on remuneration committees and strengthening transparency requirements around pay determination policies. The average annual remuneration for executive chairpersons was S$1.18 million while CEOs earned S$1.24 million, according to the study.