On Business Times today:
- Big bucks for directors
By Kamarul Yunus Published: 2012/08/16
MALAYSIAN BUSINESS SURVEY: Top 20 companies forked out RM534.95m last year
LISTED companies paid out higher remuneration to their directors in 2011
compared to 2010 despite the cautious economic climate brought about by
the eurozone debt crisis, a Malaysian Business annual survey of the
"highest-paid directors" revealed.
According to the August 16 issue of the business magazine, the top 20
companies forked out RM534.95 million last year, up 17 per cent from
2010, in terms of total payouts.
"Out of the more than 600 companies surveyed, close to half paid out
more than RM1 million in remuneration to their highest-ranking
executives in 2011," Malaysian Business said.
Apart from payouts, the survey also reveals director remuneration from a
sectoral perspective and what government-linked companies dished out to
their head hanchos.
"It also gives readers a peek into the ACE Market's top executive earners," it said.
Genting Bhd topped the list with a big payout of RM117.69 million to its
board. However, this was a modest rise of 5.6 per cent as opposed to
what it had paid out previously.
IOI Corp Bhd came in second with a total board payout amounting to RM60.30 million, up 7.1 per cent from 2010.
Genting also had the highest remuneration band of RM113 million to RM113.05 million for a single director.
However, the company did not name who the director was. The top
executive listed is its executive chairman and chief executive officer
Tan Sri Lim Kok Thay.
In the highest remuneration band for a single director, the second top
company was IOI Corp Bhd, which paid out a remuneration band of between
RM56.75 million and RM56.80 million to its highest-ranking director.
"We assume that the recipient was IOI Corp director and founder Tan Sri Lee Shin Cheng," Malaysian Business said.
The table posted with the article:
Guess what?
Compare that table to the one posted last year posting:
The Incredible Growth In Malaysian CEO Pay. Here's the table again for easy reference.
What do you see?
oO
Exactly!
How much is enough?
Apparently it's never..........
ps: here's the old news article dated 2004. Yes,
The Incredible Growth In Malaysian CEO!!!!!
- August 02, 2004 21:28 PM
Malaysia's Directors Paid More Money In 2003
KUALA LUMPUR, Aug 2 (Bernama) -- Directors of Malaysian public-listed
companies are generally paid more money in 2003, given the improving
economy and rising profits, according to a survey on directors'
remuneration carried out by Malaysian Business magazine.
The survey finds that there were more millionaire directors last year
compared with 2002 as more top executives earned bigger bucks, Malaysian
Business said.
Top executive directors of companies such as Safeguards Corporation, IJM
Corporation, Malaysia Airlines and Choo Bee Metal saw their pay
packages hitting seven-digit figures.
Meanwhile, their counterparts in IOI Corporation, Star Publications,
Hwang DBS and Maxis Communications also enjoyed hefty hikes, as these
companies enjoyed increasing profits, Malaysian Business said.
The survey, which entered its third year, studied 548 companies which
paid RM300,000 and more per annum to their highest paid directors.
In total, these companies paid out a whopping RM1.13 billion to their directors in 2003.
Malaysian Business said that Corporate Malaysia's highest-paid director
is from Genting Bhd (Genting's chairman/president and chief executive
officer (CEO), Tan Sri Lim Kok Thay who gets between RM40.15
million-RM40.20 million).
"His remuneration package within the RM40.15 million-RM40.20 million
band makes him possibly one of the very few, if not the only Malaysian
director, to take home an eight-digit figure compensation," it said.
The second highest paid director is from Resorts World, a subsidiary of
Genting Bhd, whose compensation is in the RM16.65 million-RM16.70
million band. (Resorts World chairman, president cum CEO, Tan Sri Lim
Koy Thay (RM16.65 million and RM16.70 million),
These payouts, however, might have been paid to the same person taking into consideration the possibility of double counting.
Ranking third is an executive from Berjaya Sports Toto, who earned a
compensation package in the RM8.15 million-RM8.20 million band (Berjaya
Sports Toto CEO, Tan Sri Vincent Tan gets between RM8.15 million-RM8.2
million).
IOI Corporation dished out between RM6.90 million-RM6.95 million to its
top executive putting him in fourth place (IOI Corporation executive
chairman, Tan Sri Lee Shin Cheng (RM6.90 million-RM6.95 million).
The fifth spot is taken by a director of IOI Properties, a subsidiary of
IOI Corporation, with a remuneration of RM6.90 million-RM6.95 million
(IOI Properties' executive chairman Tan Sri Lee Shin Cheng (RM6.90
million-RM6.95 million).
Again this payout may have been paid to the same person, the magazine said.
Malaysian Business also said that while the mountain of wealth got
larger for some, there were also directors who took sizeable pay cuts in
2003.
But more peculiar were the instances of directors being paid top dollar
although the companies they helm fell further into the red or are in the
Practice Note 4 category, which groups companies with negative
shareholder funds, it said.
The magazine said this phenomenon highlights a troubling issue about
directors' remuneration in Malaysia -- that there is generally an
absence of a link between company performance and directors'
remuneration --.
Nevertheless, it said that more companies have displayed good
transparency standards by going beyond the minimum requirement to
disclose the exact amount paid to each of their directors last year, but
these companies still remain in the minority.
"Strangely a handful of companies, which took that extra disclosure step
in 2002, regressed to the minimum requirement of `band-width'
disclosure in 2003," Malaysian Business said.
Others in the list are:
Star Publications (Malaysia), group managing director and CEO, Datuk
Steven Tan Kok Hiang (RM6.35 million-RM6.4 million), Hwang-DBS
(Malaysia), executive chairman and managing director Datuk Seri Hwang
Sing Lue (RM4.42 million) Rashid Hussain executive chairman, Datuk Sri
Sulaiman Abdul Rahman Taib (RM4.3 million- RM4.35 million).
RHB Capital executive chairman, Datuk Sri Sulaiman Abdul Rahman Taib
(RM4.3 million-RM4.35 million), MK Land executive chairman, Tan Sri
Mustapha Kamal (RM3.652 million), Public Bank non-executive chairman Tan
Sri Teh Hong Piow (RM3.65 million-RM3.7 million).
Yu Neh Huat executive chairman, Datuk Dr Yu Kuan Chon (RM3.6
million-RM3.65 million), Landmarks managing director, Mohamad Abdul
Halim Ahmad (RM3.1 million- RM3.15 million), PPB Group executive
chairman, Ong Le Cheong (RM3.1 million- RM3.2 million), Edaran Digital
Systems executive director, Mohd Shu'aib Ishak (RM3.05 million-RM3.1
million), Malayan United Industries chairman cum CEO, Tan Sri Khoo Kay
Peng (RM2.9 million-RM2.95 million).
Berjaya Group chairman cum CEO, Tan Sri Vincent Tan Chee Yioun (RM2.85
million-RM2.9 million), British American Tobacco (M) executive director,
Russell Scott Cameron (RM2.812 milion), Berjaya Land CEO, Datuk Robin
Tan Yeong Ching (RM2.8 million-RM2.85 million) and DRB-HICOM group
chairman, Tan Sri Mohd Saleh Sulong (RM2.60 milllion-RM2.65 million).
Malaysian Business, the country's premier business magazine published by
Berita Publishing Sdn Bhd, also features every year the country's 40
Richest Malaysians and the MB100 list, comprising the choicest companies
on Bursa Malaysia.
Let's take the following into perspective.
Let's compare then and now.
Take the following into persperctive.
Let's compare the earnings for fy 2003 and compare it with earnings fy 2011 and of course the pay..... (reasoning is simple. We note how much the pay increase and then we see if the company made such similar progress with its earnings... )
I will use IOI Corp as an example. Why?
In 2003 CEO was paid 6.95 million. Today the CEO is paid 60.3 million. So when we compare 2003 and 2011, we are looking at an increase of 53.35 million or an increase of 867%!!!!!
867% babe!
Holy cow!
You got it babe!
Let's see if the CEO paid is justified when we look at its earnings.....
IOI's 2003 Q4 earnings:
Quarterly rpt on consolidated results for the financial period ended 30/6/2003
IOI Corp made 53.24 million for fy 2003 according to that earnings notes.
Huge Mistake! (Was looking at the EPS! Duh! )
IOI made 502.052 million for fy 2003.
IOI's 2011 Q4 earnings:
Quarterly rpt on consolidated results for the financial period ended 30/6/2011
IOI's 2011 made 2222.899 million or 2.2 billion according to that earnings notes.
Which is an increase of 2169.659 million or 2.16 billion. Which works out to an increase of 4170%.
This would mean an increase of 1720.847 million or 1.7 billion only.
Which works out to an increase of 442%.
Would that be justifiable?
The profit increased some
41.7 4.42 times since 2003.
BUT the CEO pay only increased some 8.67 times since 2003!!!!!
Where's the logic?
Is this even justifiable???
Does a mankind really needs to even live on 10 million a year???
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