State Banks Push IBF Financial to Review Executive Pay

The governance dispute at IBF Financial Holdings centers on whether senior executives’ pay and authority are proportionate to the relatively small stakes held by private shareholders. The issue matters because state-linked banks, including First Commercial Bank, are influential shareholders, making compensation policy a test of how public capital is supervised. Any departure from standards at state-controlled lenders could raise questions about cost discipline and board accountability.

Mega Financial Holding Chairman Tung Jui-pin said IBF’s private shareholders do not own a large stake and that the vice chairman’s compensation and management arrangements should follow standards used at state-controlled banks. First Commercial Bank and other state-linked shareholders have asked the board to review pay structures at IBF Financial Holdings and IBF Securities. The reports did not disclose the compensation amount, private-shareholding percentage, board-meeting date or timetable for changes.