- Bursa CEO's 57% pay rise spurs questions
Business & Markets 2013
Written by Lee Wen Ai of theedgemalaysia.com
Thursday, 28 March 2013 14:13
KUALA LUMPUR (Mar 28): A 57% year-on-year increase in the remuneration package of BURSA MALAYSIA BHD 's CEO Datuk Tajuddin Atan grabbed the attention of Minority Shareholders Watchdog Group and piqued interest from shareholders at the company’s AGM today.
Tajuddin’s pay package was raised from RM3.5 million in 2011 to RM5.5 million in 2012.
A few shareholders raised the question on the CEO’s salary at Bursa's 36th AGM at PWTC today. They wanted the board to explain why the CEO's pay in 2012 was “more than doubled” from the previous year when the stock exchange's performance was "not impressive".
"The increase was partly due to a full year's pay in 2012 as compared to just 9 months' pay in 2011 (because Tajuddin was appointed in April 2011),” said Bursa's chairman Tun Mohamed Dzaiddin Haji Abdullah.
"The CEO package is competitive with other listed companies and is a competitive package for a CEO of an exchange. The board is mindful that fair remuneration is critical to attract and retain the best talents," he added.
At the AGM, a shareholder also asked what Bursa's role was following an increasing trend of listed companies being taken private, wiping billions off the exchange. And after several years, these companies got relisted.
"When [privatisation and relisting of the same companies] happens, I think someone is making money but not us shareholders," remarked the shareholder.
To that question, Tajuddin responded:
"Bursa has engaged with its stakeholders on this. The conclusion was that these corporate exercises were business decisions.
"Bursa will continuously look for new quality companies with good valuations to list on the exchange, in line with the freer flow of funds and investors in ASEAN and the ASEAN Trading Link."
Reporters covering the AGM wer e banned from taking any notes or using recording devices and mobile phones.
Then I want to touch in this statement.
Bursa will continuously look for NEW QUALITY companies with good valuations to list on the exchange.
Take a recent posting: Smartag Sinks Deeper
When was Smartag listed? March 2011.
When did Smartag started announcing losses? 18 Aug 2011!! ( See Since Listing, Smartag Had Reported Losses Every Quarter! )
Is Smartag the only such good quality company that was listed recently?
Can you find more?
How about the stock performance of China Automobile Parts (CAP) since listing?
IPO Price: 68 sen
Closing Price on Listing day: 78 sen (Wanna guess the listing day high?)
Opening price this morning: 37 sen.
I wonder if this is considered a QUALITY STOCK with GOOD VALUATIONS for the stock exchange investors?