KUALA LUMPUR – Listed companies paid out higher remuneration to their directors in 2009 compared to 2008.
Malaysian Business in its annual survey of the ‘Highest Paid Directors’ reveals that the top 10 companies in terms of total payouts forked out nearly RM300 million last year. Out of the more than 600 companies surveyed, close to 240 directors drew more than RM1 million in remuneration in 2009 despite the cautious economic environment.
The survey appears in the Aug 16 issue of Malaysian Business.
Not unlike last year, a large part of this increase comes from Genting Bhd, which topped the list with a big payout of RM92.11 million to its board. The company also had the highest remuneration band of RM87.6 million – RM87.65 million for a single director. However, the company did not name who the director was. The top executive listed is its executive chairman chief executive Tan Sri Lim Kok Thay.
Other companies with the highest remuneration bands for a single director were Genting’s subsidiary Genting Malaysia Bhd which paid out RM37.25 million & above to its top executive. These payouts, however, might have been paid to the same person taking into view the possibility of double counting.
In third place is IOI Corporation Bhd, which paid out a remuneration band of RM25 million – RM30 million to its highest-ranking director. However, this is less than the RM41.10 million – RM41.150 million it paid out in 2008. We assume that the recipient was IOI Corp director and founder Tan Sri Lee Shin Cheng.
The survey lists a total of 628 companies with a remuneration band of above RM300,000 as stated in the company’s annual report. Of these, only about 7% of the companies were transparent in stating the exact remuneration of their top executive. Interestingly, several companies with huge losses still rewarded their directors with huge payouts.
The survey also reveals director remuneration from a sectoral perspective and what government-linked companies (GLCs) dish out to their head honchos. It also gives readers a peek into the ACE Market‘s top executive earners.
Malaysian Business, the country’s premier business magazine published by Berita Publishing Sdn Bhd, also features yearly the country’s 40 Richest Malaysians and the MB100 comprising the choicest companies on Bursa Malaysia.