All the news we hear and read in magazines,newspapers,TV shows and documentaries are interestingly about Great CEOs or Leaders are more about what they earned a month,a year and in their career!Why?
We “poor people” are awed as to their high paying salaries in the Millions of USD,Ringgit or SGD every month they worked.Prof Drucker the Great Manageement Guru once cautioned us to only pay about 20 times more salary between the lowest officer than the CEO (No.1) and anything more than that will be bad or create great tensions in the company due to the exorbitant salary differences.
For example Ramli read the news about our own Malaysian Bank CEO who is paid annually a salary of almost RM 5 Million a year while the maybe lowest executive in the bank may earned (eg.RM 2,500 x 16 months with 4 mths bonus) RM 40,000 annually.So based on this example the CEO earned almost 125 times more than the normal executive in the bank?Its so much more than the 20 times salary difference as proposed by Prof.Drucker?
In USA the salary of CEOs are mind boggling where the CEO of Apple Inc received about USD378 Million (RM 1.16 Billion) in his 2011 salary and perks.Is it fair or a good practice for a rich company like Apple Inc to do?Then what must be a fair compensation?
Real Great CEOs must do more for their people and that includes making their people better,richer and happier after he gets his people to work harder,smarter,more loyal and great passion for the company’s prosperity and customer satisfaction.
Fire in the CEO’s eyes must be more to all this responsibilities and roles of CEO and his ability to make things work and produce great results are his mission all the time!
CEOs who only wants big fat salary must be ignored and not worthy as Company Champion or Head Honcho!YOU only relax and enjoy your rewards after your hard work and smart thinking to raise the standard of your people,company and stakeholders satisfaction.Maybe thats a better way to make living better and improve the people happiness and lives.What say you?
Contact Ramli Abu Hassan at mobile:+6019-2537165 or email: ramlipromoter@yahoo.com
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Working in the Govt or Private company will qualify you to earn a monthly salary that is consistent and in many ways good for you and your family.If you are an Entrepreneur and if business is good then you too can qualify for your monthly earnings if you have requested the company to pay you monthly.Many Public Listed Companies Top Mgmt or even original owners of that PLCs all want a salary paid to them monthly and at times when the company made a great loss at the end of the financial year these PLCs Directors also get paid handsomely by their company and many Malaysian PLCs Directors earned at least above RM500,000 every year .The highest paid Malaysian Ditector can earn more than RM100 million a year by way of salaries,allowances and all the perks.
Malaysian Directors or CEos especially now demand easily a monthly salary of above RM50,000 a month to some a maximum of RM 800,000 a month?WOW!Maybe they raked in Billions of RM for their companies concerned!So,a million ringgit a month remuneration is oklah as decided or agreed upon by the Company Owner or BOD.
There were times when a worker in Malaysia is paid based on per day basis and also per working hour basis.Later they get paid on a weekly basis,forthnightly and monthly basis as most working people get their salaries in this way!
Entertainers like Dato Siti Nurhalizah or others may command a performance fee of RM 45,000 for a night show (wonder whats her rate now because in 2001 Ramli did asked for a quotation of Datuk Siti’s fee to her Manager)That RM45,000 fee was only for her solo performance exclude transport,food and lodging if needed and also with the presence of 4 of her crew members!
Earning a living can now best be managed on an hourly rate,daily rate,project basis or whatever have been agreed upon by the parties involved.
Like in Pro Boxing,the World Champion Manny Pacquiao from Philippines once earned USD 40 million for a scheduled 12 rounds of boxing ie.12 rounds x 3 mins per round = 36 mins of solid boxing time.So per min Pacquiao earned USD1,111,111.00 if he boxed for the full 12 rounds!
Same goes to World Class Footballers like Messi,Ronaldo and others who earned a salary of USD 15Milli8on to USD 40 million a month!
Earning a living is so important to all of us and saving part of our earnings is more equally important to meet our future needs and retirement period!Nowadays the savings attitude is slow or not so much focus and promote by Malaysian Govt and Companies alike.Young generation like Gen Y are more a tuned to spending and more spending!They have credit cards,all the gadgets with them,buying cars and even properties where many at times the maximim allowable deduction of their monthly salary maybe now is 60% is reached.This means they have only 40% balanced of their monthly salary to spend on food,schooling and all personal and family expenditures which is NOT Enough and maybe they then resort to borrowings with high interest (riba’) where alongs or banks are sourced into…this is the danger and HIGH DEBTS IN MALAYSIAN HOUSEHOLDS proof this problem exists!
What to do?
The best is education to all young generation to learn to live within their means and not live in excess or wastages of all kinds!If not all bad elements like corruption,cheating,poor moral values etc..will developed in these young people lives and then create a mess to them in living happily and harmoniously with their environment.Living in the city is already like a Rat Race or Dog eat Dog situation so why make matters worst?
Some people do have a great discipline where money is concerned and some will go to the shopping malls maybe once a month or a week for any shopping needs or a family weekend or get together affair!However many of the city folks are basically in the shopping malls almost everyday where a cup of coffee or teh tarik can cost them RM 1.80 ~ RM10.00 per cup depending on the type of restaurants they enter!Living and eating at home is another major happening Malaysian must take note seriously and its safe,clean,cheap and fun also!Try it!
So,like Ramli before every 27th of the month like today is Money Day and like Ramli adviced be careful with your money and spend accordingly,wisely,smartly and saved for a secured future.Inshallah!
Contact Ramli if interested at hp:019-2537165 or emailed at: ramlipromoter@yahoo.com
Ramli was just checking the salaries remuneration in Malaysia and Singapore and what’s the main difference is the Exchange Rate.Example,
The salary of Chief Financial Officer for Malaysia and Singapore (based on Robert Walters Global Salary Survey 2011):
Malaysia
CFO earns RM 250k – 500k annually for 2011 projection
(2010 was RM260k to 480k+)
Singapore
CFO earns SGD 250k – 450k+ for 2011 projection
(2010 was SGD 250k to 400k+)
With yesterday’s rate of SGD 1 = RM 2.4855 then it means YOU earn almost 2.5 times more in Singapore than in Malaysia!So,better work in Singapore than in Malaysia unless you as the Business Owner like Public Bank or Ambank is willing to pay 2.5 times more to your CFO,can you or will you?
Talent acquisition is never an easy job when you compare by amount of salary paid since people nowadays think more of what goes in their wallet than all the national service hype that we want our people to follow or be proud of!
Wonder whats happening now at Malaysia’s Talent Corp when they have a mission to bring in aboutb 70,000 Malaysian Talents back to Malaysia to help propel or achieve our ETP especially on making Malaysia a High Income Economy!
A doctor working in UK may not want to work in KL or Penang if the annual salary remuneration is lesser although the amount seem the same like 5,000 but in UK its GBP 5,000 and in Malaysia is RM5,000.So,we must offer the Malaysian Doctor in UK at least 5 times more his salary in Malaysia ie.RM25,000 will he then seriously think of wanting to work in Malaysia!Right?
So,forget about being an employee and lets think of being a Business Owner or Great Sports Person who earns a lot more than CEOs or CFOs or both put together!
Our Badminton Star like Datuk Lee Chong Wei is reputedly earns on a good year of performance and endorsements about RM3 million per year what more World Class Sports Person like Rafael Nadal who earns almost USD10.2 Million in 2010 just from prize money.Recently Nadal just became the Wimbledon Tennis Men’s Runner Up but he earns GBP 550k while the Champion earns GBP 1.1 Million.
However if you are Business Owner then your income will be based on your company’s performance and your share of that company.Most Business Owners in Bursa Malaysia PLCos will definitely earn many RM Millions annually by way of the share of the Net Profits and Directors’ Remunerations.However not everybody can be a successful Business Owner and it takes time,patience,discipline,financial expertise,business moves and also the right timing and luck.
So by studying the numbers we MUST earn as such to be a Millionaire or record an earning of RM 1 Million per calender year:
YOU must earn RM 1,000,000 / 12 months = RM 83,334.00 per month or
RM83,334 / 30 days =RM2,778.00 per day or
RM2,778 / 24 hours = RM 116.00 per hour or
RM 116 / 60 minutes = RM 1.93 per minute
So,do YOU have a way to earn the above amount based on per minute,per hour,per day,per month and per year?
Good luck to YOU if that is what YOU are aiming for in your life!To be a Millionaire or even a Billionaire?
It sure takes a lot of debate and negotiations to get this minimum wage for our Malaysian Worker finalised but I think the end is in sight and hopefully it will be above RM1,000 per month of basic salary excluding all the ++
We all know the cost of living especially in Klang Valley for a single unmarried person may not be enough even with a RM1,000 basic salary.Why?
There are costs for house rental or room rental,food&drinks for the month,transportation costs and worst if there is bike or car installments to pay,all other expenses like handphone top ups,clothing for work,some pocket money for younger brothers or sisters etc…
If you are a married person and your spouse is not working then it is not enough with a RM1,000 basic salary if you live in Klang Valley!
So,Ramli’s next question is why work and earn a salary of RM1000 a month maybe its better like the Indon or Bangla person to do some entrepreneurial work like selling fruits,cakes,vegetables or contract work where the monthly income is much more than RM1,000!
However do you have enough capital to start your small micro business?Money is never easy to get now and the Alongs are really “mahu potong” and the commercial banks have many questions to ask you that finally they will reject your loan application.What to do then?
The kampungs are never the same like 20 or 30 years ago where planting padi,tapping rubber or growing vegetables is a viable venture and you can earn some good money and survive living in the kampungs.Now,the kampungs are lacking enough human talents or labour and nobody wants to “break their backs” to do all the hardwork and finally earn so little because the scale of work is so small and not economical enough unless you get your kampung folks to team up and do a wide scale kampung activity like growing padi,rearing fish or growing vegetables on a contract farming basis with a guarantee of purchase by Buyers.
So,the poor or low income people still suffer and need that midas touch or BIG Opportunity to hit some jackpot kind of project or income streams.
For the many CEOs especially serving in the PLCs or Public Listed Companies in the Bursa Malaysia,their monthly and annual income are in many Millions of RM.Why?
Malaysians think these CEOs are so good and we must pay them well and they will produce the harvest of good profits and great returns for all shareholders and business owners.Just imagine the salary difference between a RM1000 minimum wage salary of the worker per month as compared to almost RM100,000~RM1,000,000 monthly salary to these “celebrity” or “cult like” CEOs!
Where’s the fairness or logic for such huge payments to these CEOs or Top Mgmt of PLCs?Peter Drucker the Great Mgmt Guru once stated that the difference of salary for a CEO and his lowest paying officer should not be more than 40 times or 20 times (as Ramli have remembered).So,if the worker earns RM1000 per month then the salary of the CEO must not be more than RM40,000 per month but what the heck when we pay them like RM100,000 or RM1,000,000 per month and that means its over 100X to 1000X more!?
No wonder companies complaints of not enough money for development work of the company like staff welfare or CR activities when most of the “bread” have been paid to these CEOs and their Top Mgmt.
So,how best to satisfy the workers and CEOs concerned to “strike” the right salary and remunerations package?
If your company is like Google or Microsoft,then all the best staff perks and remunerations can be provided continually and your company can vie for the Best Place to Work For like in the Fortune Rankings!If your company only makes a profit of RM10 Million a year like some of the PLCs then you better study all the salary differences between your general worker and the CEO!What’s the difference?
Tell Ramli what you think the fair best salary our worker should be paid and also the CEOs?
Ramli was happy and delighted to attend yesterday’s MPC Innovation Seminar-The Korean Way at PJ Hilton.What is interesting there are many friends of Ramli who have actually retired or reached the mandatory retirement age of 55 (although now in the Govt you can apply to work till 58 years of age)and still active and seem to be excited with whats happening in the country as well as all the the world’s progress either in business,learning or social matters..People above 55 are just the same like people below 55 and maybe they have better wisdom and courage!
What Ramli want to emphasise is that Malaysia must SERIOUSLY study the important roles and contributions of people above 55 who may not voluntarily want to quit their jobs but because of the mandatory retirement age set in Malaysia ie.55 years above.
If we study the statistics of Malaysians reaching this mandatory retirement age maybe there are many thousands each year and when we accumulate them for a period of 3 years there are so many actually!Are these people really still love to work and get their salary or they had enough of working “their butts out” for 55 years and now they want a good rest-no work just relax!
How many of those due for pensioned are medically unfit and better that they rest rather than work again?These are factors that Malaysia must quickly understand so that all the BRAINS that we have nurtured,developed and performing can be effectively utilised and further explored especially with all this aspirations and mission to be a developed nation, a TOP 5 Nation of Great Competitiveness and a High Income Economy nation like others.Ramli think the BRAINS OR PEOPLE THAT ARE OF HIGH KNOWLEDGE,WISDOM AND GREAT PERFORMERS must be maintained,encouraged and allowed to contribute their services to the nation rather than we hire expatriates or overseas professionals who may not have the same “semangat 1Malaysia” as we all Truly Malaysians have!
So,what to do or whats best to take actions to maintain this above 55 years age group to serve Malaysia more n more!
1.Of course,encourage them to take the offer to want to serve Malaysia when they reached 55 years old.This is the first step to show their commitment and desire to serve.
2.If their own organisations do not really have positions or vacancies for them,then the “Malaysian Workforce Centre” or MWC as Ramli like to called can act as the resource centre to know where in Malaysia vacancies are availble for their kind of talents or expertise.This will assist them to know where vacancies are available.
3.Once the jobs and locations are identified,these Above 55 Talents (A55T) can now start their work with maybe a month of Job Orientation or Familiarisation at the new location.
4.There must be a Special Unit in all organisations that help monitor and supervise all these A55T so that all the members of the A55T can work with great harmony,satisfaction and become a Great Performers to the companies or Govt Agencies where they are assigned.
5.The Govt or Cos must give a flexible working period of +3 years with further extensions of similar +3 periods until these A55T cannot work due to serious medical problems,no more interested or their contributions are not so great anymore due to new developments or other reasons..
Finally,the basic objective of making these A55Ts’ in existence is to enable Malaysia to utilise all the Brains and Professionals we possess and that we have nurtured,developed and produced all these years and not allow them to waste,be uncared for and not recoqnised!People like Royal Professor Ungku Aziz,Tun Dr.Mahathir,Prof Khoo Khay Kim,Tan Sri Ahmad Sarji and so many others are all above 8o years old and some in the 70s but their brains and expertise are as good as those below 55 years old and infact maybe better than all of them!Just imagine if we did not utilise or reached out to them to serve Malaysia once they reached the mandatory age of retirement ie.55 years old?Malaysia needs all her citizens young or old,thats the main point here!
Ramli have worked with Matsushita,Malaysia for almost 17 years since 1976 to 1993 and have been in Manufacturing,HR and Quality.Ramli have raised through the ranks but due to so called corporate politics Ramli felt that a change is necessary in Ramli’s life so Ramli was headhunted and went to work with Affin Bank as Head of TQM Secretariat from 1993 to 1996.Here again the great need for Leadership Driven and Energy as far as executing Quality in the Business must be done by the No.1 and certain things in TQM cannot be delegated by the No.1…so the disillusionment of the TQM Journey in the bank appeared..and Ramli who was then approaching his 40th year of existence decided to quit and become a full time Entrepreneur from 1stNov,1996 onwards until today!
Ramli is still not rich and still “working hard like mad” and trying the “reap the harvest” of all the knowledge he possessed and continue to seek training projects and consultancy in areas he is good at like world class performance,TQM,team based activities like QCC@ICC,KMK@KIK and MQTs plus Corp U (your inhouse U) and also the sports business where Ramli is a promoter for the sports of boxing and muaythai.
Rami have written a book “Revolusi Aksi” in March,2006 and last year have completed 3 manuscripts for his new books and hopefully his publisher will get them printed and made avaialable to the marketplace this 1stQtr 2010.
So,living and earning as an Entrepreneur is great fun in life but it is never easy and lots of sacrifices and patience when you want to “play a clean and honest game” that is no haram ways of dealings like bribes,cheating and bad intentions…
Anyway,Ramli have no regrets being an Entrepreneur although Ramli could have worked his way up to be a Managing Director or Top Senior Management if he had stayed in his job at Matsushita or Affin Bank but well thats Ramli’s destiny in life..and Allah SWT Knoweth’s Best….isn’t it?
Ramli just hoped these new ways of offering Ramli’s products and services in the marketplace will worked out well and as usual earned the big bucks to help meet the needs of Ramli’s growing family and all his loved ones.Inshallah.
Ramli loved this tagline “THE HARDER ONE WORKS,THE LUCKIER ONE BECOMES” INSHALLAH.
Ramli read an article once that said Peter Drucker-The Great Managemnt Guru once cautioned business people that “we must not pay a salary to a Top Business Leader more than a ratio of 20-to-1”- read attached article below.
If that is so,it means if the average earner in the company earns RM2000.00 per month than the No.1 Person (or his/her Boss like CEO) should earn only RM40,000.00 per month.Can we allow this to happen or not?As it is today,surely not since many Bosses earn much more like 100X or a few 500x and even some BOSSes earn 900x more!
So it is fair to pay these CEOs or No.1 in the Co soooooooooooo much?
Everybody works 9 am to 5 pm and everybody have a job scope designed for him/her.Of course a CEO job scope is really big cause he/she is paid BIG salary but should it be so big as 900x!
In US the salary of their “Celebrity or Cult Hero like CEOs'” is also mind bogling as compared to the profits or losses they produced for their companies.Ironically some failed companies Bosses also managed to get really high salaries and bonuses in return for a poor annual company performance!
Former Premier of Singapore Mr.Lee Kuan Yew once cautioned Singaporeans that if they want to be really wealthy than DO Business dont work in the Government Sector or be an employee either a CEO or Worker but be your own boss and you determine how high a salary you want from the profits you will make in your business,if you make itlah!
Singaporeans really enjoy a Great Salary scales as compared to their Malaysian counterparts why?
There are many reasons for having higher salaries and among them are:
1.Make them satisfied always with high salaries
2.Discourage the temptations of wanting to be corrupt or take bribes
3.No financial problems since good salary will help pay the bills and expenses
4.High salaries mean better business results since we hire the best talents paying the best salaries
5.The company or country can afford because they are rich and profitable performances all the time
6.and many more reasons
Lets think hard all 1Malaysians-Does paying high salaries mean Malaysia will be Greater Nation and perform World Class achievements or like they say “sama sajalah” meaning same only no change at all!
We want to eliminate corrruption in our People especially those working people and also corruption is a 2 way process,the giver and the receiver.So both must stop these shameful acts and also GREED!
Can we do it,think again about the salaries Malaysians earned?Are we paying too much for some BOSSES or we still do not know the right way to pay well and justly for a work or performance well done!
2010 is a year for great changes but before that we need great minds and courage to get Great Actions and Results done! Who to start?Of course from the Bosses lah…… see some references on this subject:
by Dr. Scott Brown, Education Director, Investment U
Monday, June 8, 2009: Issue #1014
With every disclosure I receive on executive compensation coming out of failing and defunct firms it makes me sick – as an investor and citizen alike. And I’m not the only one…
Many Americans have been outraged as the CEOs and other executives responsible for the financial crisis have pocketed millions of dollars in bonuses and golden parachutes.
And rightfully so.
The recent bailouts of banks, automakers and insurance companies has brought excessive executive compensation into the public eye. And the numbers are staggering.
* According to The Corporate Library, in 2008 the CEO of an S&P 500 company received an average compensation of $10.4 million. During that time the S&P 500 lost almost 40% of its value.
* Yet despite these declines, CEO perks grew in 2008 to an average of $336,248 – a full nine times the median salary of a full-time worker. And that’s just perks!
By monitoring executive compensation, you can be the first to know if the companies that you’ve invested your hard earned money in are legally stealing from you. Here’s how you can tell how much “your” executives are being paid and whether it’s in line or not.
Executive Compensation Rates: Directly Transfered From Poor to Rich
Even as CEOs walked away from the carnage they were morally responsible for – despite financial protection from congressionally issued “Stay Out Of Jail” passes – the economy tanked for working people as 1,200,000 rank-and-file workers lost their jobs in 2008 alone.
And where did the money come from to fund executive compensation packages driving even more cash to the top 1% of American wealth?
It was a direct transfer of $700 billion in taxpayer money from the poor to the rich!
* These executives ran their corporations into the ground with mistakes that would have either fired a rank-and-file employee or rendered a lesser employee behind bars.
* Instead of being punished, many of these executives are house hunting in over the top markets like Beverly Hills and the Hamptons.
* Many of these executives offered excuses and clever lies for what they had done – dodging what they were responsible for.
Often just before they jumped ship – with loot in hand of course… Take this excuse for example:
* “My compensation is never going to be an embarrassment to GE!” – Jeffrey Immelt, CEO of GE, February 2009 just before being grilled for insane compensation packages in some of the worst performing years of GE history.
The fact of the matter is that individuals with more responsibility who are producing more than typical value for their bosses and shareholders do deserve to make more money than the average worker.
But how much more?
Dr. Peter Drucker On The Executive Compensation Ratio
Well to answer the question about executive compensation ratios, I turned to a man whom many would argue to be the most cogent management professor of the last century: Dr. Peter Drucker.
* He was one of the first to talk about responsibilities and accountability, not just of managers, but of employees as well.
* Drucker’s idea was that everyone is responsible in one way or another for the success of an enterprise. Everyone concerned has to be held accountable for their own actions; he used executive salaries as just one example.
* Peter said executive salaries were clearly out of line with the responsibilities of those holding to positions.
* Ratios of the compensation of American top managers to rank-and-file workers are the highest in the world – too high by his standards.
Drucker recommended that the ratio needs to be less than 20-to-1. So how do executive salaries stack up? Take a look.
The Whack-Onomics Of Executive Compensation Rates
In 2007 rank-and-file pay averaged $37,360.89. And based on his 20-1 ratio, Drucker showed that CEOs shouldn’t be earning more than $747,217.78 on average in annual compensation.
Unfortunately, at 344 times typical salaries, executives are hosing America for $12,852,145 a year on average. Even more disturbing, half of all executive pirates make more than that… some much more.
The money to pay these ruffians comes from the bottom-line of stocks you own.
Is there a way to get back? Yes, Warren Buffett doesn’t allow the heads of companies to get away with this when he sits on the board. He talks quietly and carries a big stick.
If he sells out the company stock tanks. And, even though most CEOs shiver at the thought of “Buffett on the board,” shareholders bid the stock up in support of the “Oracle of Omaha.” His careful stewardship of companies, and the discipline he requires of his investments make them better than most.
It also makes his stock, Berkshire Hathaway (NYSE: BRKB), a good addition to your portfolio.
How To Track The Executive Compensation Of Your Stocks
But we all can’t wield the power of a multi-billionaire. So here’s what I recommend. Track the amount of salaries of the top executives of the stocks you own. While many sites disclose this public information, the one I like is Reuters.
By going to their section on stocks – officers & directors, you can see how much each of the officers is making and how much of their compensation is done through salary, stock options or other compensation – perks like free rent, chauffeurs, or jets.
While pay can fluctuate between industries and companies, I suggest you compare your company to its direct competitors to see if their pay is out of line or within industry norms.
We also discuss how to find out whether the top employee is a good steward or a pirate at the helm in the Investment U course if you’re looking to find out more.
It all starts with education,
Dr. Scott Brown
Editor’s Note: As part of our new Investment U course, Scott Brown reveals the five worst lies CEOs give. And how shockingly unprofitable they are for investors. Over the next few weeks, Scott will be showing readers what these lies are and why you should stay clear of companies that relay them. So stay tuned.
More on this topic (What’s this?)
Excessive Executive Compensation: When is Too Much, Too Much? (Jutia Group, 6/9/09)
Executive Compensation (Buying Value, 8/22/09)
Obama Sickens Middle Class Sensibilities on Executive Compensation (Successful Trading Tips with Joh…, 1/23/09)
Read more on Executive Compensation at Wikinvest
Related Investment U Articles:
* The Hidden Side of Bonuses
* S&P’s Back To The Future: 1997
* “White Cap” Stocks: The Best Way For Investors To Beat The Market
Some more infos about Top Executive salaries:
The CEO of Genting, Tan Sri Lim Kok Thay was ranked as the highest paid CEO in the Malaysia’s corporate world with staggering earnings of RM86.5 million in 2007.
On average, throughout the year 2007, he received about RM7.2 million per month, or RM1.8 million per week, or about RM260,000 per day. Roughly, his daily earning can pay the salary of an office executive earning RM2,000 for over 10 years.
The earnings also did not include other benefits and expenses such as traveling, luxury accommodations, company cars and so on.
Lim Kok Thay is the son of Genting’s founder and former Chairman, the late Tan Sri Lim Goh Tong. He took over the helm as the company’s chief in 2006.
As for the GLC (Government-Linked Corporation) companies, the CEO of Bumiputra-Commerce Holdings (CIMB), Datuk Nazir Razak, became the highest paid GLC CEO with a disclosed earnings of RM9.35 million. Nazir is the key person behind the phenomenal success of CIMB, which grew by leaps and bounds through mergers, acquisitions and product expansions.
Malaysian Business Survey:Highest Paid Directors in Malaysia for 2008.
KUALA LUMPUR, Aug 17 — Genting Bhd topped the list in the “highest-paid directors” survey, with a big payout of RM81.98 million to its board last year.
According to Malaysian Business, the annual survey revealed that the top 50 firms in terms of total payout generously forked out RM553 million in 2008.
The payout for the top 10 companies alone was nearly RM300 million, the business magazine said.
“This show that despite the slowing economy, listed companies paid their directors a higher remuneration in 2008 compared to 2007,” it said.
Boardroom remuneration has become a hot topic in the current economic environment, with directors seen as reaping huge rewards as investors face dwindling share values, Malaysian Business said.
The survey report, which appeared in the Aug 16 issue, listed 630 firms that paid their top-earning directors RM300,000 and above for the financial year 2008, amounting to a total of RM1.7 billion to their boards collectively.
Genting had the highest remuneration band of RM77.65 million to RM77.7 million for a single director, according to the survey, but the firm did not name who it was.
The top executive listed for Genting is its chairman and chief executive officer Tan Sri Lim Kok Thay.
IOI Corporation Bhd came in second as the company doubled the payout to its board members last year to RM45.16 million, of which the bulk went to a key director who received a sum in the RM41.1 million to RM41.15 million band.
“We assume that this recipient would be IOI Corp director and founder Tan Sri Lee Shin Cheng,” said Malaysian Business.
Other firms with the highest remuneration bands for a single director were Genting’s subsidiary, Genting Malaysia Bhd (formerly Resorts World), which paid out RM37.25 million and above to its top executive.
But these payouts might have been paid to the same person, giving rise to the possibility of double counting, the magazine said.
SP Setia, a firm that has consistently kept to high governance standards, came in fourth as it upped the remuneration of group managing director Tan Sri Liew Kee Sin by 32 per cent to RM10.26 million on the back of increased profitability, according to Malaysian Business.
Tan Sri Teh Hong Piow, chairman and founder of Public Bank, was back on the list as the highest-paid director at the bank, with a remuneration package totalling RM6.96 million.
The bank’s managing director and chief executive officer, Tan Sri Tay Ah Lek, who was the highest paid in 2007, received RM5.15 million in 2008, the magazine said.
Malaysian Business noted that SP Setia and Public Bank were among the handful of companies which disclosed the exact remuneration received by each director.
“Sadly, only about five per cent or 44 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,” it said.
Ancom Bhd propelled to the top 10 list when its top executive received a huge increase in remuneration in 2008 compared to the previous year, the magazine said.
It said that other notable shifts came from firms like DRB-Hicom Bhd and Huline Bhd, whose biggest increases in remuneration to their single top executive got them a place in the top 50 list.
Bumiputra-Commerce Holdings Bhd cut its total director payout by close to half last year to RM10.54 million from RM17.37 million.
In tandem, remuneration to its key director, Datuk Seri Nazir Razak, was down to RM5.13 million from RM9.35 million the bank paid him in 2007.
This pushed the company to the 12th spot in the survey from the sixth spot previously, the magazine added. — Bernama
highly paid CEOs and top executives in Malaysia include Teh Ah Lek (Public Bank – RM6.2 million), Rozali Ismail (Puncak Niaga – RM5.2 million), Ralph Marshall (Astro – RM3.4 million), Amirsham Abdul Aziz (Maybank – RM2.7 million), Ahamad Zubir Murshid (Sime Darby – RM2 million), Yusli Mohamed (Bursa Malaysia – RM1.97 million) and Lodin Wok Kamaruddin (Bousted Holdings – RM1.85 million
Who helped to get the results for the Malaysian Economy in 2009?Who make things happen and who helped to unleash the Malaysian Talents to Great Profits and Excellent Brand Building?
Everyone want to be Rich maybe Very Rich in Malaysia nowadays!Do you know that the highest paid CEO in the GLCs’ earned almost RM10 million per year and many earned over RM1 Million a year.Many Malaysian CEOs also earned about RM100,000 and more per month.
The highest paid person in the Listed Cos earns almost RM100 million per year or maybe more.Please read Malaysian Business mag since this mag have an annual survey and listings of all TOP Malaysian Earners.
The MB of Selangor DE as I read in the newspapers earned about RM50,000.00 per month and his Excos’ maybe a little lesser than him.
The PM of Malaysia and his DPM also earn maybe less than RM100,000 per month but if you compare with the PM of Singapore than our Top Leaders salaries are “no where” near lah.
Ramli was at the Govt Transformation Program (GTP) Open Day last 17thDec at Sunway Convention Centre and did ask some questions and made some suggestions to the many Labs session.As for this subject on earnings rightly esp at the Corruption Lab,will it be good to raise the salary of our Govt Leaders and Managers including the govt employees alike?
Easy to say but how to do it right?
The Malaysian economic performance is not that great where we can afford to pay high salaries to our People like in Singapore or US!
The corruption cases are so rampant and getting bad like the case of the 2 missing jet engines where even the Top Generals did not notice these bad mgmt happening infront of their eyes and noses!In Japan if an airline company experience a bad incident like the plane door got faulty the CEO of the Airline will QUIT his job since he is the person responsible for the airline co and the public knows he managed badly his company but not here in Malaysia,its different.This is what we called accountability and responsibility of Leaders in Power!
So,who DRIVES the Malaysian Economy in 2009 and 2010?
Will it be the Business Leader who earns RM100 Million or RM10Million per year or the Political Leader who earns about RM100,000 or RM50,000 a month that DRIVES the Malaysian Economy?
Do we pay high salaries based on performance like great profits that are tangible in nature to our Business Leaders especially?Are we happy with such rumenerances as stakeholders?
Once,Peter Drucker the Mgmt Guru said “the salary of Top CEOs must not be more than 42 times than the normal worker” BUT if you analyse the situation nowadays it is not so,right?
You and Me also worked very hard and smart but why we tolerate high salaries to these Top Managers?
Maybe we actually live in this “Rat Race” or “Greed Mentality”
As a Muslim,forget all those examplary or noble values as shown by the Sahabat,Tabiin and Tabiin Tabiin!They sacrifice their time,pleasures and even lives just to make sure Islam is Managed Par Excellence and not living in excess!
Tell Ramli,who owns 5 to 10 houses with equally 5 to 10 cars and other assets that one does not know that they owned that much?It is a common senario nowadays with such greed and bad habits,but who cares?
So,if the Malaysian Economy need to grow exponentially high and sustainable these noble values and “not join the rat race” culture must prevailed!We need Political Leaders to energise the Rakyat to perform World Class Performance and MALAYSIA BOLEH! spirit.We need Business Leaders to produce more with less resources by implementing good to great strategies that improve productivity,increase profits,eliminate wastages due to not doing right first time and also a more sustainable way of managing earth and company resources well.
So,both Political and Business Leaders will help to generate the betterment of the Malaysian Economy in 2010 and everyone can be rewarded justly and fairly based on the actual performance of their areas of control and influence.
Corruption and greed MUST BE ELIMINATED and any wrong or bad practices must be curbed since everyone are paid with good salaries and good profits earned.Corruption exists when people think it is not enough and greed is good.They want more and more of everything and live in excess,thats the Great Danger!
More thoughts are needed and with Ramli’s Revolusi Aksi approaches and his World Class Performance methodologies,Inshallah we can make the Malaysian Economy produced Great Results in 2010 more than 2009 or previous years. Write or contact Ramli for details or feedbacks:
hp:+6019-2537165
email: ramlipromoter@yahoo.com
Profile:www.linkedin.com/in/ramlipromoter
Some infos on the performance of the Malaysian Economy in 2009 and 2010 (forecast):
December 15, 2009 18:56 PM
Malaysia’s Economy To Grow 4.5 Per Cent In 2010, Says ADB
By D. Arul Rajoo
BANGKOK, Dec 15 (Bernama) — With the global economy slowly recovering, the Asian Development Bank (ADB) expects Malaysia’s economy to return to growth in 2010.
In its special assessment of the region released Tuesday, the international development finance institution has forecast Malaysia’s gross domestic product (GDP) to grow by 4.5 per cent next year.
It said Malaysia was expected to contract 2.5 per cent in 2009 after registering -5.1 per cent in the first half of the year and -1.2 per cent in the third quarter.
In a separate Asian Economic Monitor report for December 2009, the Manila-based institution said all of the Asean-4 economies were pummeled by the precipitous drop in external demand but in terms of overall economic impact, Thailand and Malaysia were hurt the most.
Thailand is expected to bounce back to a 3.5 per cent growth in 2010 while Indonesia and the Philippines – less reliant on exports – fared better in 2009.
Indonesia’s robust growth is expected to continue in 2010 with GDP growth rising to 5.4 per cent and the Philippines at 3.3 per cent.
Vietnam, one of the fastest growing economy in the region before the current financial crisis which started in the United States, is recovering after bottoming out in the first quarter of 2009, and is forecast to grow 6.5 per cent, up from the 5.0 per cent expansion expected in 2009.
Singapore’s GDP is expected to reach 4.5 per cent, recovering from the projected -2.0 per cent this year while Brunei is expected to contract by 1.2 per cent in 2009 before recovering in 2010, growing 2.3 per cent fueled by higher global energy demand and petroleum prices.
ADB said it had upgraded its economic forecast for developing Asia after third-quarter data showed a better-than-expected performance by many countries in the region.
It is now expecting developing Asia to grow by 4.5 per cent in 2009 and 6.6 per cent in 2010, which marks an increase from the 3.9 per cent and 6.4 per cent it predicted in its Asian Development Outlook (ADO) 2009 Update published in September.
The forecast for China remains unchanged from September’s ADO 2009 Update at 8.2 per cent in 2009 and 8.9 per cent in 2010, while India’s growth could be 7.0 per cent this year, one percentage point higher than previously expected, but has kept the 2010 forecast unchanged, also at 7.0 per cent.
“The global economic situation is changing rapidly, necessitating frequent reassessments.
“The prospects for much of the region look rosier than they did in September when we last did a full study of the region,” said ADB chief economist Jong-Wha Lee.
He said fiscal and monetary stimulus policies and a moderate improvement in the G3 economies of Europe, Japan and the United States helped East Asia and Southeast Asia in particular.
— BERNAMA
MALAYSIAN ECONOMIC OUTLOOK
Executive Summary
Although it may be too early to say that the global recession has ended, numerous indicators are suggesting that the downturn is somewhat subsiding. Massive national fiscal stimuli and monetary expansions have largely aided the gradual recovery. Questions have been raised as to whether economic activities can be sustained once these measures are withdrawn..
In Oct 09, the IMF anticipates that the global economy to expand by 3.1% yoy in 2010, from a 1.1% yoy decline in 2009. For 2010, the U.S. is projected to grow by 1.5% yoy, the euro zone at 0.3% yoy, Japan at 1.7% yoy, and China 9.0% yoy. The comparable yoy figures in 2009 are -2.7% (U.S.), -4.2% (euro zone), -5.4% (Japan), and +8.5% (China).
Regionally, the ADB has also lifted its GDP growth forecast for developing Asia to +3.9% yoy in 2009 and +6.4% yoy in 2010. The regional economies are seen to be more resilient to the downturn than initially feared. Underpinning the region’s growth prospects is China, whose aggressive monetary easing and fiscal stimulus could accelerate the GDP growth rate to +8.2% yoy in 2009 and to +8.9% yoy in 2010.
Malaysia’s GDP registered a smaller contraction of -3.9% yoy in 2Q09 (-6.2% in 1Q09) after rebound in the external sector. Although the external sector was still weak, public spending had cushioned the economy from a deeper slide. In view of the widening fiscal deficit, the government plans to reduce its expenditure in the 2010 Budget, possibly through reduction in energy subsidies and/or tax reform. On the supply side, the services sector had turned positive in 2Q09, while the manufacturing sector reported a smaller decline.
In order to make Malaysia more attractive to foreign investors, liberalisation measures of the services sector have been announced. Effective Apr 09, 27 services sub-sectors were fully liberalised to foreign investors, on the premise that Malaysia lacks expertise and local investments in many of these sub-sectors. Among the sectors opened up are computer and related services, health and social services, tourism services, transport, recreational, business services, and shipping. Moreover, on 30 Jun 09, the long standing 30% bumiputra equity requirement for newly listed companies was removed, making investment conditions less restrictive. This will bring Malaysia’s financial market closer to regional benchmarks, but the impact remains to be seen since there are many factors influencing investment decisions.
Monthly indicators up to Jul 09 have shown some improvement, in line with regional economies, albeit at a slower rate. In Jul 09, industrial output fell by 8.4% yoy (-9.5% in Jun 09), signalling recovery across all industries. This is also supported by the fact that industrial production index (IPI), which surged 7.1% mom in Jul 09 (+0.3% in Jun 09).
Exports contraction moderated to -19.8% yoy in Aug 09 (-22.9% in Jul 09) due to better performance in crude oil, chemicals, electrical, and electronic products. On a mom basis, exports fell 2.0% (Jul 09: +8.3%) after three consecutive months of gains, indicating a patchy recovery. On the other hand, imports performance deteriorated to -18.6% yoy in Aug 09 (-16.2% in Jul 09) due to slower rate of re-stocking parts and components. On a mom basis, imports also sagged 6.6% (+14.0% in Jul 09). Stronger growth in export relative to import led to a larger trade surplus of RM 9.57 billion (RM 7.81 billion in Jul 09).
As a result of higher base effects, overall consumer price inflation fell for a third consecutive month, by 2.4% yoy in Aug 09 (-2.4% in Jul 09). Food prices moderated, while transport and communication decelerated further in Aug 09. Core inflation declined by 4.2% yoy in Aug 09 (-4.5% in Jul 09) due to higher recreation, services, and culture activities. On a mom basis, consumer inflation rose 0.2% in Aug 09 (+0.1% in Jul 09). This lends credence to MIER’s expectation of a positive inflation to re-emerge in 4Q09. On the other hand, falling prices in both local and imported materials continued to drag down producer prices by 12.8% yoy in Jul 09 (-12.2% in Jun 09).
The Central Bank of Malaysia has left the Overnight Policy Rate (OPR) unchanged at 2.00% for the fourth consecutive meeting since Feb 09. While the economic contraction is expected to decrease from 1H09 into a slight positive growth in 4Q09, the monetary policy stance is expected to be fairly accommodative for the remainder of the year. This is also facilitated by the absence of inflationary expectations in the near term. Hence, MIER expects the OPR to be relatively unchanged at least until 2010 or when the economy recovers, both domestically and externally.
Moreover, this is also supported by the fact of the cautious sentiments as captured by the in-house Consumer Sentiment (CSI) and Business Conditions Indices (BCI). Ongoing economic uncertainties due to global financial deleveraging activities, low wage growth, and the possibility of a sudden withdrawal of economic stimuli continued to repress confidence among consumers and corporate entities. While both CSI and BCI settled above the crucial 100-point mark in 3Q09, the rate of change has decreased qoq. (CSI: 105.4 in 3Q09, 105.8 in 2Q09; BCI: 113.7 in 3Q09, 105.3 in 2Q09)
There are glimmer signs that the global downturn has stabilised somewhat, but the recovery is expected to be sluggish and uneven. The healing from the current crisis will be difficult compared to previous ones because of the synchronised nature of the downturn. It will take time and huge resources to revive the deeply entangled US financial sector while policy options are running out. The weak external sector will impede a faster recovery, and the lower commodity prices are not helping either. Banks are becoming more cautious as bad loans could rise soon, limiting the flow of funds to firms. The services sector will be the pillar of strength amidst a glum manufacturing sector. The technical recession in the 1H09 is likely to continue into 3Q09 before the economy could exit from it in the 4Q09. However, Malaysia may not regain more strength until the global economy is back on track, which is going to be at a disappointingly slow pace.
In view of improving macro indicators, and somewhat better CSI and BCI as well as the sectoral indices, MIER is revising Malaysia’s GDP growth forecast upwards for 2009 to -3.3% yoy from -4.2% earlier. In addition, the GDP growth for 2010 is also upgraded to 3.7% yoy from 2.8% previously. Downside risks are still prevalent and might perturb the road to recovery, but there are stronger positive influences that led to MIER’s upward revision. Posted by suzy at 12:57 PM on October 14, 2009
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