Some Malaysian CEOs get lesser pay
Malaysia - Malaysia's Prime Minister Najib Razak said chief executive officers (CEOs) in government-linked companies (GLCs) receive remuneration packages that are less than or on par with their private sector counterparts.
According to Najib, pay packages for senior executives in GLCs are based on experience, expertise, and performances. Najib added that incentives given to these CEOs are linked to their performance targets set in Key Performance Index (KPI), as well as other indicators. The payouts could also be in the form of shares or cash.
The amount of incentives rewarded will be based on the guidelines set by the GLC Blue Book - Intensifying Performance Management published by the Putrajaya Committee to raise these companies' performance level. The guidelines will help GLCs design an incentive structure that ensures basic salary is competitive with the market, and total pay is reflective of individual performances.
Najib was responding to a question from opposition MP Lim Lip Eng in Parliament yesterday. Lim had requested for a list of the highest paid senior officers in GLCs since 2006.
The minister also highlighted some pay contrasts between GLC and the private sector. He said AirAsia's CEO received an annual total pay package between RM1 million (S$420,000) and RM6 million (S$2.5 million) from 2006 to 2009. He compared this with GLC Malaysia Airline, whose CEO took home total compensation ranging from RM0.9 million (S$370,000) to RM1.5 million (S$630,000) for the same period.
Najib added, "For the automotive industry, [GLC] Proton Holding's CEO sees an annual income margin of between RM500,000 and RM1 million, compared with the CEO of [non-GLC] Tan Chong Motor Holdings who receives between RM4.5 million and RM4.95 million."
More quality Lighthouse titles
Get your marketing department up to speed with Asia's most read marketing site
Want to get on the right side of the procurement department?
Direct them to Procurement Asia
- Malaysia Airlines
- Tan Chong Motor Sales
Malaysia Airlines Related Stories:
- Case study: MAS’ oneworld campaign
- Marketing Excellence Awards judges announced
- MAS appoints communications head
- MAS celebrates 40th with year-long campaign
- MAS returns with CIMB Classics
- MAS' Al-Ishsal Ishak leaves post
- Expedia and MAS make travelling easier
- MAS calls for media pitch
- MAS found guilty of price-fixing
- Airlines look for partners
- Countdown to Agency awards underway
- MAS offers unpaid leave to contain cost
- H&M to open at Lot10, MAS shortlists entries
- MAS reworks procurement plans
- Data-based marketing strategies vital
- AOTY Malaysia Judges Revealed
- MAS explains child-free zone on A380
- MAS and Bangkok Airways begin code share
- MAS takes off on ‘The Big Flight’
- YouTube arrives in Malaysia