May 29th, 2008
Datuk Yeo How’s Resignation From IOI Group
Recently, in the press, there was this interesting article on IOI Corp Bhd where Credit Suisse Research said in a note to clients that IOI Corp’s valuation premium was affected on concerns over Yeo How’s departure
“Credit Suisse Research said the “delicate balance” between executive chairman Tan Sri Lee Shin Cheng’s entrepreneurship and Yeo’s good capital management and corporate governance would be affected. It downgraded IOI Corp to underperform from outperform and cut its target price to RM7 from RM10.”
This might not be very surprising, as sometimes bankers and public investors are wary when long serving staff specially Chief Financial Officer who worked in family controlled companies who supposedly help to uphold proper corporate governance and control mechanism suddenly leave their companies. In this case, unfortunately it applied to IOI Corp.
Some small details:
- Datuk Yeo How, a long serving director has resigned IOI Corp Bhd and IOI Properties Bhd group executive director of finance and corporate affairs to pursue a new career overseas. He is a certified public accountant, was first appointed to the board in 1996. He has been with the IOI Group for the past 24 years. According to IOI one of his principal responsibilities is as chief financial officer. (Yeo also oversees the group’s commodity marketing and palm-based manufacturing business units.)
- Yeo would be leaving the group to pursue a new career. It was learnt Yeo could have accepted a job offer by a Singapore-based plantation group.
- Datuk Yeow Chor, the chairman’s eldest son who has been on the board since 1996 is supposed to replace Datuk Yeo How.





